A confidentiality agreement, sometimes known as a non-disclosure agreement, is a binding, legal contract that outlines certain information in the possession of one or both parties, and restricts one or both parties from disclosing the information to third parties. 

Typically, before granting a new employee access to confidential information, an employer may require that employee to sign a confidentiality agreement.  Doing so helps to ensure that the company’s proprietary or secret information will not be disclosed or otherwise disseminated to outside parties and/or competitors.  Such agreements are also often signed as part of a severance agreement.  Examples of the information intended to be kept confidential include: personnel records, trade secrets, customer lists, business strategies, and financial information.

The terms of a confidentiality agreement usually include whether the agreement binds both parties (a “mutual” agreement), or simply restricts one party; how long the restriction will last; to whom and for what purpose the parties may disclose the information; and for what purpose the parties may use the information. 

If you have questions about the terms of your confidentiality agreement, or would like to negotiate the terms of your agreement, contact Caffarelli & Siegel Ltd. to speak to a Chicago Employment lawyer.