A New York Non-Disclosure Agreement is a legally binding agreement that protects trade secrets. Employers in New York commonly use it to prevent employees from using confidential business information for unfair competition. Although New York law does not have specific statutes related to trade secrets, NDAs are still enforceable in New York.
Those who violate non-disclosure agreements in New York can be held liable for damages from unauthorized use of confidential information. New York’s approach to safeguarding sensitive business information is unique as it does not follow the Uniform Trade Secrets Act but relies on common-law protection.
Trade Secret Laws
NY Senate Bill S3457 (currently under consideration)
UTSA Version Adopted: New York courts recognize civil liability for trade secret misappropriation and have adopted UTSA’s definition of a trade secret despite not adopting the UTSA itself.
Misappropriation: An act governing the misappropriation of confidential information, or “trade secrets,” has not been established in New York, so common law will rule misappropriation cases.
Trade Secret Definition (UTSA ยง 1(4)):
“Trade secret” means 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.
