Employee confidentiality agreement template

An outline of what a confidentiality agreement usually covers, to discuss with your attorney.

Use it on screen
Employee confidentiality…Main sectionsLegal points to reviewProcessParties and date.🤐
How to use itUse this outline to prepare for a conversation with an employment attorney. Confidentiality agreements are legal documents and enforceability depends on state law and wording.

Who it is for and when to use it

Many businesses hold information worth protecting: customer lists, pricing, schedules for client sites, or employee personal data. A confidentiality agreement sets expectations.

Agreements must not stop employees from discussing wages or working conditions or from reporting to authorities where the law protects that. This is one reason legal review is essential.

14 items. Keep it on a tablet, or print a copy for the clipboard.

Main sections

Legal points to review

Process

Putting the employee confidentiality agreement template to work

  1. Decide what really needs protection.
  2. Draft with an employment attorney.
  3. Use plain language.
  4. Train managers on handling confidential data.
  5. Review the template periodically.

A employee confidentiality agreement in use

A security company asks guards to keep client site layouts, alarm codes and patrol schedules confidential. The attorney-reviewed agreement lists those examples and states that nothing in it limits employees’ rights to discuss pay or report concerns to agencies.

Why keep an employee confidentiality agreement

Trade secret protection under the DTSA and state laws depends on the owner taking reasonable steps to keep the information secret, and a signed agreement is one of those steps. It also tells new hires clearly which client information they must never share.

Filled-in sample

Parties and date Clearview Payroll Services and Hannah, start Jan 6
Confidential examples Client wage data, bank details, pricing sheets
Not confidential Her own pay and working conditions
Return of materials Laptop, badge, client files on last day
Duration Client data: no end; pricing: 2 years after leaving
Required notices DTSA whistleblower immunity notice included
Signed copy Personnel file; wording attorney-reviewed

Clearview Payroll Services in Phoenix gives client wage data no end date but limits pricing to two years. Pricing goes stale, while client payroll data stays sensitive for as long as it exists.

What trips people up

When to edit the employee confidentiality agreement

Healthcare and home careMake clear how the agreement relates to patient privacy rules, and point to your separate privacy policy.
Staffing and security firmsInclude client information such as site layouts and codes, and explain obligations when an employee moves between clients.
Quick winPair the signing with a short conversation about real examples from the job. Employees remember a story about a leaked price list better than a clause.

Questions about the employee confidentiality agreement template

Is this a non-compete?

No. Non-competes are a different agreement with stricter rules.

Can it ban discussing pay?

Generally no. Get legal advice.

Do all employees need one?

Those with access to sensitive information.

How long does it last?

As the agreement says and the law allows.

What is the Defend Trade Secrets Act notice?

The DTSA gives employees immunity for disclosing trade secrets in confidence to government officials or an attorney to report suspected illegal activity. Agreements covering trade secrets signed or updated after May 11, 2016 should include notice of that immunity. Without it, the employer can lose the right to extra damages and attorney fees against that employee.

Can a confidentiality agreement stop an employee from talking about harassment?

Under the federal Speak Out Act, a nondisclosure clause signed before a dispute arises cannot be enforced against claims of sexual assault or sexual harassment. Several states go further, and the NLRB limits broad clauses that stop employees discussing working conditions. Have an attorney check the wording.

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Less chasing, more doing

Once the employee confidentiality agreement template is in place, the next question is usually about shifts and hours. Book a demo to see how EZTime handles scheduling and time tracking.

Disclaimer: This template is general information, not legal advice. Employment rules differ by state and city and change over time. Have a qualified employment attorney or HR professional review it before you use it.