Are There Different Types Of Confidentiality Agreements?

Confidentiality agreements might change somewhat, but they are all meant to ensure that employees do not share or profit from information that has been deemed confidential. Unlike non-compete agreements and non-solicitation agreements, confidentiality agreements can last forever. This means that if there is something truly confidential and the employer has an employee sign a confidentiality agreement, then there is no limitation as to when an employee or former employee can start using or sharing that information with someone else.

How Long Should The Obligations Of Confidentiality Last Following The Termination Of An Agreement?

Typically, we advise that the obligations of confidentiality last forever, or certainly for as long as the information is deemed to be confidential, which could be five years, 10 years, or even longer in certain cases.

What Is The Purpose Of The Non-Competition Clause?

The true purpose of the non-competition clause is to protect an employer’s confidential information or their goodwill. The reality is that we see employers who are trying to limit their competition, which isn’t a valid reason for a non-competition clause. Certainly, if employers ever admitted that they were trying to do that, then the clause would likely be unenforceable.

What Is The Purpose Of A Non-Solicitation Clause?

The purpose of a non-solicitation clause is similar to the purpose of a non-competition clause with the exception that under non-solicitation clauses, the former employee can work for a competitor and start their own business; they are, however, prohibited from soliciting customers or former employees.

For How Long Should I Make The Non-Solicitation Clause Last?

A non-solicitation clause is typically enforceable for one year. Anything beyond that is going to be case-dependent and more scrutinized by the courts. In most cases, a clause for three or four years will be reduced to one or two years. When determining whether a non-solicitation clause should be upheld for longer, the courts will consider whether it is reasonable and whether there is consideration being given.

What Is An Injunction As It Relates To A Non-Compete Agreement?

An injunction typically happens early on in a case. One type of injunction is called a temporary restraining order, which lasts 14 days under Texas law (although there are some ways to extend these orders). The major hearing that happens after that is called the temporary injunction hearing, which is where both parties present witnesses and evidence. At one or both of those hearings, the issue of whether the agreement itself is enforceable will be addressed, as well as whether the individual should be restricted from working for their new employer, starting their own business in the same area, or soliciting certain customers, vendors, or employees. These types of decisions are crucial in that they potentially decide an employee’s livelihood, especially for those who have worked in a certain industry for many years and it’s the only type of work they’re familiar with.

For more information on Types Of Confidentiality Agreements, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (281) 277-3066 today.