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Internal Confidentiality Agreement Template for United States

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Key Requirements PROMPT example:

Internal Confidentiality Agreement

"I need an Internal Confidentiality Agreement for our software development team of 15 employees who will be working on a new AI product launch in March 2025, with specific provisions for protecting source code and algorithmic innovations."

Document background
Internal Confidentiality Agreements are essential documents for protecting an organization's sensitive information from unauthorized disclosure or misuse. These agreements, governed by U.S. federal and state laws, establish clear guidelines for handling confidential information and the consequences of breach. The Internal Confidentiality Agreement is particularly crucial when employees or contractors have access to trade secrets, proprietary technology, customer data, or business strategies. It defines what constitutes confidential information, outlines permitted uses, and specifies the duration of confidentiality obligations.
Suggested Sections

1. Parties: Identification of the company and the employee/contractor bound by the agreement

2. Background: Context of the agreement and purpose for protecting confidential information

3. Definitions: Clear definitions of confidential information and other key terms

4. Scope of Confidentiality: Detailed description of confidentiality obligations and permitted uses

5. Duration: Time period for which confidentiality obligations remain in effect

6. Return of Materials: Requirements for returning or destroying confidential information

7. Breach and Remedies: Consequences of violating the agreement and available remedies

Optional Sections

1. Non-Solicitation: Optional provisions restricting solicitation of employees or customers when protecting against employee poaching or customer interference

2. Third Party Information: Optional provisions for handling confidential information from third parties when employees may have access to such information

3. Intellectual Property Rights: Optional provisions for protection of IP rights related to confidential information when trade secrets or proprietary technology are involved

4. Data Privacy Compliance: Optional provisions regarding personal data protection obligations when confidential information includes personal data

Suggested Schedules

1. Schedule A - Categories of Confidential Information: Detailed list of types of confidential information covered by the agreement

2. Schedule B - Authorized Recipients: List of individuals or roles authorized to access confidential information

3. Schedule C - Security Protocols: Specific procedures for handling and protecting confidential information

4. Appendix 1 - Acknowledgment Form: Form for employees to acknowledge receipt and understanding of the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Industries

Defend Trade Secrets Act (DTSA): Federal law enacted in 2016 that provides uniform federal protection for trade secrets and includes specific whistleblower immunity provisions

Economic Espionage Act: Federal law that criminalizes the theft of trade secrets, including corporate espionage

Computer Fraud and Abuse Act: Federal law that addresses unauthorized access to protected computers and data

Electronic Communications Privacy Act: Federal law governing the privacy of electronic communications in the workplace

National Labor Relations Act (NLRA): Federal law protecting employees' rights to discuss working conditions, which may impact confidentiality agreement terms

Whistleblower Protection Provisions: Federal and state laws protecting employees who report violations of law to government agencies

Fair Labor Standards Act (FLSA): Federal law governing employment standards that may affect confidentiality requirements in employment relationships

Uniform Trade Secrets Act: State-level legislation providing protection for trade secrets, adopted with variations by most states

HIPAA: Healthcare privacy law that must be considered if the confidential information includes protected health information

Gramm-Leach-Bliley Act: Federal law governing the protection of consumer financial information

GDPR Compliance: EU data protection regulation that may apply if dealing with European personal data

State Employment Laws: Various state-specific regulations affecting employment relationships and confidentiality obligations

Case Law Requirements: Recent court decisions affecting the enforceability of confidentiality agreements including reasonable scope and duration

Severability Provisions: Legal requirement to include provisions ensuring that if one part of the agreement is found invalid, other parts remain enforceable

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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