No matter how great a company is, employee turnover is
inevitable. Employees switch jobs for any number of reasons, and
undeniably they leave their positions with far more knowledge about
their employer, its practices, and, possibly, its trade secrets.
Companies can (and often do) require employees to sign
nondisclosure agreements to ensure their former employees do not
use this "on-the-job education" to a competitors'
benefit.
Because they do not restrain trade, like their cousins the
non-compete agreement, Texas courts generally find nondisclosure
agreements enforceable. However, like non-compete agreements,
nondisclosure agreements should be specific in scope, meaning
companies cannot prohibit employees from disclosing
any of the information they learn during the
course of their employment. Rather—to be
enforceable—nondisclosure agreements should specifically
define or identify the information the employer considers
confidential or a trade secret.
