Create a New Jersey Non-Disclosure Agreement with our customizable template!
A New Jersey non-disclosure agreement (NDA) is commonly known as a confidentiality agreement. The goal of a New Jersey non-disclosure agreement is to protect trade secrets and other confidential business information. Examples may include intellectual property and customer information.
When an employee or an independent contractor signs a New Jersey non-disclosure agreement, they are entering into a legally binding contract. Because of this, any business that wishes to draft non-disclosure agreement templates or anyone who is asked to sign an NDA as part of an employment agreement or employment contract should seek legal advice from a law firm that offers employment law services.
Non-disclosure agreements and trade secrets are regulated by N.J. Rev. Stat. §§ 56-15-1 through 56-15-9 . This is known as the New Jersey Uniform Trade Secrets Act. New Jersey’s Uniform Trade Secrets Act also explains when businesses are entitled to damages as well as the three-year limitation on the ability to take legal action .
A recent amendment known as NJLAD (New Jersey Law Against Discrimination) prohibits the use of an NDA in employment contracts to conceal any claim of discrimination, retaliation claims, or harassment claims. Collective bargaining agreements, NDAs, and non-compete agreements are excluded from NJLAD. Additionally, any provision in an employment contract that waives a procedural right or is otherwise inherently against public policy is considered unenforceable under the new law.
New Jersey businesses should also consider using a New Jersey non-competition agreement to protect their interests.
Because the purpose of a New Jersey non-disclosure agreement is to legally protect trade secrets, it’s important to know how the New Jersey Uniform Trade Secrets Act defines the term “trade secrets.” N.J. Rev. Stat. § 56:15-2 defines a trade secret as information held by one or more person in a business that may be a formula, pattern, compilation of business data, program, device, method, technique, design, diagram, drawing, invention, plan, procedure, prototype, or process with its own actual or potential financial value.
A trade secret’s value occurs because the information isn’t general knowledge that the public has or that is something that can easily be determined by another business for their economic advantage. The business claiming information as a trade secret must take reasonable steps to keep that information private.
To write a basic New Jersey non-disclosure agreement, it's important to review both the Uniform Trade Secrets Act and NJLAD. Because the laws are complex in New Jersey, it's important to get qualified legal advice to ensure that your NDA is properly drafted if you need to protect your business from a former employee.
The Disclosing Party and the Receiving Party must sign the NDA as well as print the names. Their signatures should be dated. Both parties should receive a copy of the finalized contract for their records.
Download Word Template
Download PDF
Create Custom New Jersey Non-Disclosure Agreement
Word
PDF
