The Arkansas non-disclosure agreement (NDA) is an employment contract used to prevent the misuse of an employer’s confidential and proprietary information. An employer may have an employee sign the contract to ensure that company secrets are kept secure and out of the hands of third parties. If an employee wrongfully discloses company information after signing the contract, they will be subject to repercussions enforced by Arkansas law (see “Misappropriation” below for specific penalties). Enforceability of the contract will only be possible while the company information remains a trade secret. The agreement will be unenforceable if the information becomes public knowledge or if the employee receives notice informing them of their release from the contract.

Laws Arkansas Trade Secrets Act

Misappropriation (§ 4-75-601(2)) – If trade secrets are misused, the prevailing party may recover attorney’s fees (§ 4-75-607) and the costs of actual damages caused by the disclosure (§ 4-75-606).

Trade Secret Definition (§ 4-75-601(4)) – “Trade secret” means information, including a formula, pattern, compilation, program, device, method, technique, or process, that:

  • (A) Derives independent 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
  • (B) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.