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What is a nondisclosure agreement?

When you start a new job in Indiana, you may be asked to sign a nondisclosure agreement. Before you sign, it is important to understand what exactly the document is and how it may affect you and your career. According to Forbes, a nondisclosure agreement is designed to protect confidential information. It may be used by an employer to ensure you cannot share with anyone anything you learn or become exposed to while on the job.

Most agreements contain specific elements that spell out the details. They include what is covered as confidential and what is excluded. In addition, they must include the names of those involved. For an employer's NDA, this would usually be the employer's name and your name.

An NDA will also specify how long the agreement is effective. In some cases, you may be bound by the agreement even after you are no longer employed at the company. While it is legal for the agreement to have a term that is indefinite, they usually do have a set time table. It often depends on the lifespan of the information you will be learning. For example, a new technology will likely become obsolete within a short period of time since technology is always evolving and advancing, so an NDA for this type of knowledge may only last a few years. On the other hand, if you are privy to a trade secret, then you may not ever be able to disclose the information because a trade secret must remain secret to maintain legal protection. This information is only intended to educate and should not be interpreted as legal advice.

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