The Employee Trade Secret Agreement is essential for businesses operating in the United States that need to protect their proprietary information and maintain competitive advantage. This agreement, governed by federal laws including the DTSA and state-specific trade secret statutes, establishes clear guidelines for handling confidential information, defines protected trade secrets, and sets forth employee obligations. It should be implemented at the start of employment or when an employee gains access to sensitive information, and includes provisions for both active employment and post-employment periods.
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1. Parties: Identification of the employer and employee
2. Background: Context of the agreement and employment relationship
3. Definitions: Detailed definitions of trade secrets, confidential information, and other key terms
4. Scope of Protected Information: Detailed description of what constitutes trade secrets and confidential information
5. Employee Obligations: Specific duties to maintain confidentiality and protect trade secrets
6. Security Measures: Required procedures for handling and protecting confidential information
7. Return of Materials: Requirements for returning confidential materials upon employment termination
8. Term and Survival: Duration of obligations and which provisions survive employment termination
1. Non-Competition: Restrictions on competitive activities - include only when permitted by state law and necessary to protect legitimate business interests
2. Non-Solicitation: Restrictions on soliciting employees or customers - include when protecting customer relationships or workforce stability is crucial
3. Invention Assignment: Assignment of employee inventions to employer - include when employee's role involves creative or technical work
4. Whistleblower Provisions: Employee rights regarding reporting violations - required by DTSA for agreements executed after May 2016
1. Schedule A - Pre-Existing Inventions: List of employee's prior inventions excluded from assignment
2. Schedule B - Specific Trade Secrets: Detailed list of company's trade secrets if appropriate to document
3. Schedule C - Security Procedures: Detailed security protocols and procedures
4. Schedule D - Acknowledgment Form: Employee acknowledgment of receiving and understanding agreement
Relevant legal definitions
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