The Georgia non-disclosure agreement (NDA) is a binding contract that offers employers protection in the event that employees disclose confidential business information to third (3rd) parties. While it’s not necessary that an agreement be drafted in order to recover damages caused by wrongful disclosure (see § 10-1-763(c)), employers may still find it beneficial to complete the document as it proves that the employee was aware of their obligation to maintain secrecy. Employees that misappropriate the employer’s confidential information may have an action filed against them in court within five (5) years after the misappropriation was discovered or, by reasonable inquiry, should have been discovered.

Laws Title 10, Chapter 1, Article 27 (Georgia Trade Secrets Act of 1990)

Misappropriation (§ 10-1-761(2)) – An employer that prevails in court against an employee is entitled to recover damages caused by the misappropriation (§ 10-1-763) and reasonable attorney’s fees (§ 10-1-764).

Trade Secret Definition (§ 10-1-761(4)) – “Trade secret” means information, without regard to form, including, but not limited to, technical or nontechnical 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 of actual or potential customers or suppliers which is not commonly known by or available to the public and which information:

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