A Pennsylvania non-disclosure agreement is a legally binding contract signed by employees or contractors that enables a business to protect their trade or business secrets. Pennsylvania law says that employees owe a duty to their employer. That duty is not revealing business or trade secrets. A Pennsylvania non-disclosure agreement is often included as part of an employment contract.
Pennsylvania adopted the Uniform Trade Secrets Act. This Act, found at 12 PA Cons Stat §§ 5301 through 5308 (2016) sets out the scope of how non-disclosure agreements are treated as well as how certain key terms are defined under the law.
Pennsylvania non-disclosure agreements are important contracts that protect the best interests of a business: its trade secrets. Under 12 PA Cons Stat § 5302, a trade secret is defined as information such as a formula, drawing, pattern, compilation such as a customer list, a program, a device, a method, a technique, or a process with its own actual or potential financial value. This value is accumulated by the fact that it isn’t information that is generally known to the public and it isn’t something that another business would discover in the normal process of business that they could use for themselves. The business claiming the information as a trade secret must take reasonable steps to keep the information private.
Pennsylvania’s Uniform Trade Secrets Act also explains the types of damages that a business may be entitled to receive if someone violates the NDA, how secrecy of the information may be preserved, and the statute of limitations on the agreement.
For more protection of trade secrets, use this form together with a Pennsylvania noncompete agreement.