The South Dakota non-disclosure agreement (NDA) is a form that an employer will often make their employees sign to ensure that their confidential information remains protected. A company will go to great lengths to protect their trade secrets from being exploited and exposed to their competitors; an NDA is just one layer of protection to retain the economic value of their information. Once signed, the document serves as a binding contract that the employee must adhere to in order to avoid facing damages for misappropriation.


Laws – Chapter 29. Uniform Trade Secrets Act

Misappropriation – In accordance with § 37-29-3, an employer is entitled to recover damages for the wrongful misappropration of their trade secrets. The complainant may also receive compensation for attorney’s fees (§ 37-29-4 Attorney’s fees).

Trade Secret Definition (SD Codified L § 37-29-1 (2017)) – “Trade secret,” information, including a formula, pattern, compilation, program, device, method, technique, or process, that:

(i) 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

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