The Idaho non-disclosure agreement (NDA) protects an employer’s trade secrets by limiting the information employees are allowed to disclose to third parties. Employees will often become aware of confidential details such as manufacturing techniques, formulas, client contact information, and financial statements. To ensure the security of this sensitive data, the employer may demand that certain employees sign a non-disclosure agreement. Once signed, the restrictions of the contract will be enforced until the employer releases the employee from the contract, or until the confidential information becomes public knowledge, whichever happens first.
Misappropriation (§ 48-801(2)) – If the courts find an employee to be guilty of misappropriation, the employer will be eligible to recover all damages caused by the wrongful disclosure. The total amount recovered may be doubled if the employee maliciously or willfully misuses the employer’s information (§ 48-803).
Trade Secret Definition (§ 48-801(5)) – “Trade secret” means information, including a formula, pattern, compilation, program, computer 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. Trade secrets as defined in this subsection are subject to disclosure by a public agency according to chapter 1, title 74, Idaho Code.