The Hawaii non-disclosure agreement (NDA) is used to ensure that an employer’s trade secrets remain confidential and are kept from wrongful disclosure by employees. Execution of the NDA may be necessary after an employee becomes aware of sensitive information which, if disclosed to a third party, may leave the employer disadvantaged in their field of business. Sensitive information could include a list of potential clients, income reports, surveys results, and other details that are not available to the general public and could potentially derive commercial value.

Laws Title 26, Chapter 482B (Uniform Trade Secrets Act)

Misappropriation (§ 482B-2) – Punitive measures may be imposed on the employee if they misappropriate the employer’s trade secrets. Depending on the circumstance, the employee may be forced to pay the costs of damages (§ 482B-4) and reasonable attorney’s fees (§ 482B-5).

Trade Secret Definition (§ 482B-2) – “Trade secret” means information, including a formula, pattern, compilation, program device, method, technique, or process that:

  • (1) 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
  • (2) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.