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Old 02-16-2004, 11:08 AM   #1 (permalink)
 
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Anyone have such an agreement for employees to sign?
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Old 02-16-2004, 01:48 PM   #2 (permalink)
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I wouldn't recommend it. Confidentiality agreements are extremely costly and difficult to enforce. Seek competent legal council.

It does no good to hold a wiffle bat over your employees.

Employ only those you trust and terminate employees who violate that trust immediately. Control access to proprietary information.



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Old 02-16-2004, 02:11 PM   #3 (permalink)
 
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Thanks for the advice.
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Old 09-19-2004, 06:34 PM   #4 (permalink)
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We have every new employee sign one. I choose to do this after hearing this story. A girl from another salon on slow days for two months went through their computer of 8,000 members and sold theri client list. She wrote them all down by hand.
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Old 09-19-2004, 08:18 PM   #5 (permalink)
 
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Sounds like it may be a good idea, especially if an employee is selling your client list, but wouldn't it be hard to prove and enforce?
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Old 09-19-2004, 08:18 PM   #6 (permalink)
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We also have them sign a non-compete.
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Old 09-20-2004, 04:24 PM   #7 (permalink)
 
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All employees sign a non-disclosure and non-compete agreement in addition to an employment contract that states in part, employee at will, no other promises mades, etc.

We used them in 48 states and they are very enforceable.
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Old 09-20-2004, 05:13 PM   #8 (permalink)
 
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Anyone have an example they want to share with me?
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Old 09-21-2004, 07:05 PM   #9 (permalink)
 
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Sure. Here's our Confidentiality Agreement we used in 48 states that passed muster with our Labor Law firm in Atlanta, DC and San Fran.

The following is not meant to be legal advice. You should seek legal advice from your attorney.

SCHEDULE "A"

EMPLOYEE CONFIDENTIALITY AGREEMENT


THIS AGREEMENT, made and entered into on the date set forth below, by and between (Insert Company Name) a (insert state name) corporation (the "Company") and ____________________, a (insert state name) resident ("Employee").

In the course of Employee's employment by Company, Employee will have access to Company's most sensitive and most valuable trade secrets, proprietary information, and other confidential information, the use, application or disclosure of any of which will cause substantial and possible irreparable damage to the business and asset value of Company. Accordingly, Employee accepts and agrees to be bound by the following provisions of this Agreement.

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, of the employment or continued employment of Employee by Company, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:

1. For purposes of this Agreement, the following definitions shall apply:

(a) "Trade Secret" shall mean any information of Company, without regard to form, including but not limited to technical or non-technical data, a formula, a pattern, a compilation, a program, a device, a method, a technique, a drawing, a process, financial data, financial plans, product plans, or a list (whether in written form or otherwise) of actual or potential customers or suppliers, which is not commonly known by or available to the public and which information (i) derives economic value, actual or potential, from not being generally known to and not being readily ascertainable by proper means by other persons who can obtain economic value from its disclosure or use and (ii) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy. Trade Secrets also include any information described in this subparagraph 1(a) which Company obtains from another party which Company treats as proprietary or designates as trade secrets, whether or not owned or developed by Company.

(b) "Confidential Information" shall mean any data or information, other than Trade Secrets, that is of value to Company and is not generally known to competitors of Company. To the extent consistent with the foregoing, Confidential Information includes, but is not limited to, lists of any information about Company's executives and employees, marketing techniques, price lists, pricing policies, Company's business methods, customer lists, and contracts and contractual relations with Company's customers and suppliers. Confidential Information also includes any information described in this subparagraph 1(b) which Company obtains from another party which Company treats as proprietary or designates as confidential information, whether or not owned or developed by Company.


(c) The terms "Trade Secrets" and "Confidential Information" shall not include any materials or information of the types specified above to the extent that such materials or information: (i) are or become publicly known or generally utilized by others engaged in the same business or activities in which Company utilized, developed or otherwise acquired such information; or (ii) are known to Employee prior to his employment; or (iii) are furnished to others by Company with no restriction on disclosure. Failure to mark any of the Trade Secrets or Confidential Information as confidential shall not affect its status as Trade Secrets or Confidential Information under this Agreement.

2. Employee recognizes and acknowledges that Company is engaged in activities which involve, and continue to involve, the use of skilled experts and the expenditure of substantial amounts of time and money. As a result of such investments of skill, time and money, Company has developed certain Confidential Information and Trade Secrets which give Company significant advantages over its competitors. Due to the nature of Employee's employment by Company, Employee may have frequent direct and indirect contact with various customers of Company and may be presented with, have access to, and/or participate in the development of both Confidential Information and Trade Secrets. These Trade Secrets and Confidential Information constitute valuable, special and unique assets of Company and any disclosure thereof contrary to the terms of this Agreement would cause substantial loss of competitive advantage and other serious injury to Company. All Confidential Information, Trade Secrets, procedures, protocols, and concepts, used in the business of the Company and disclosed to Employee solely as a result of his employment with the Company will remain the property of the Company and shall be used by Employee solely for the purposes of performing his duties as a Employee of the Company. Employee agrees he will not use, copy, disclose, exploit, or develop any of the aforementioned Information, or seek to use, copy, disclose, exploit or develop any customer, product, conceptual, or procedural information during the Term of this Agreement except pursuant to an employment relationship with the Company.


3. For the reasons recited above, Employee covenants and agrees that:

(a) During the term of employment by Company and after the termination thereof, whether such termination is at the instance of Employee or Company, Employee will not, except as expressly authorized or directed by Company, use, copy, or disclose, or permit any unauthorized person access to, any Trade Secrets belonging to Company or any third party; or

(b) During the term of employment by Company and for a period of two (2) years after termination, whether such termination is at the instance of Employee or Company, Employee will not use, copy, or disclose, or permit any unauthorized person access to, any Confidential Information belonging to Company or any third party.

(c) Upon request of Company and in any event upon the termination of employment with Company, Employee will deliver to Company all memoranda, notes, records, tapes, documentation, disks, manuals, files or other documents, and all copies thereof, concerning or containing Confidential Information or Trade Secrets that are in Employee's possession, whether made or compiled by Employee or furnished to Employee by Company.


4. Employee recognizes and agrees that:

(a) The covenants and agreements contained herein shall inure to the benefit of, and may be enforced by, the successors and assigns of Company and shall survive any termination of employment with Company, whether such termination is at the instance of Company or Employee and regardless of the reasons therefor;

(b) Except as may be provided in the separate Employment Agreement between Company and Employee of even date herewith, the employment of Employee may be terminated by either Company or Employee at will and nothing contained in this Agreement shall be interpreted or construed to the contrary;

(c) The injury Company will suffer in the event of Employee's breach of any covenant or agreement contained herein cannot be compensated by monetary damages alone, and Employee therefore agrees that the Company, in addition to and without limiting any other remedies or rights which it may have either under this Agreement or otherwise, shall have the right to obtain an injunction against Employee, from any court of competent jurisdiction, enjoining any such breach; and

(d) The covenants contained herein shall be construed as agreements independent of each other and of any other provision of any contract between the parties hereto, and the existence of any claim or cause of action by Employee against Company, whether predicated upon this or any other contract, shall not constitute a defense to the enforcement by Company of said covenants.

5. If any provision or any part of any provision of this Agreement shall not be valid for any reason, such provision shall be entirely severable from, and shall have no effect upon, the remainder of this Agreement. Any such invalid provision shall be subject to partial enforcement to the extent necessary to protect the interest of the Company.

6. This Agreement shall be binding upon the parties to this Agreement and their respective heirs, administrators, executors, successors and assigns.

7. This Agreement has been executed and delivered in the State of Georgia and it and the rights and obligations of the parties hereunder shall be construed under and governed by the laws of the State of (insert state) without giving effect to principles of conflicts of laws.


8. The intent of this Agreement is to provide Company with all remedies afforded to it under applicable law, including but not limited to those remedies under O.C.G.A. 10-1-760, as amended.

9. This Agreement shall be deemed effective at the earlier to occur of the commencement of the employment relationship between Company and Employee or Employee's initial possession, knowledge or acquisition of Company's Trade Secrets or Confidential Information. The protection afforded hereunder is in addition to and does not replace any prior confidentiality or nondisclosure obligation of Employee to Company.







[Signatures on Next Page]











IN WITNESS WHEREOF, the parties have executed this Agreement this _____ day of _________________________, 2004.


COMPANY:





By: ______________


[CORPORATE SEAL]

EMPLOYEE:_____________________________

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Old 09-21-2004, 07:10 PM   #10 (permalink)
 
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Thanks, very much Gary. Now promise not to tell anyone I have this...............
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