A South Dakota Non-Disclosure Agreement (NDA) is a legally binding document that serves as a vital shield for confidential information. This formal contract between two or more parties is crucial for safeguarding proprietary data during hiring, contracting, or business collaborations.
South Dakota NDA Laws Overview
- Governing Laws: Uniform Trade Secrets Act. (SD Codified Laws § 37-29-1 – 37-29-11)
- Statute of Limitations: If the plaintiff becomes aware of the misappropriation, they have three years to file a lawsuit against the defendant. (SD Codified Laws § 37-29-6):
- Definition of Trade Secret (SD Codified Laws § 37-29-1(4)):
“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.
Are NDAs Enforceable in South Dakota?
Yes, NDAs are enforceable in South Dakota. Businesses use and enforce them when sharing sensitive data with employees, partners, and third parties, ensuring all parties involved understand their obligation to keep confidential information private.
The state’s Uniform Trade Secrets Act defines the legal rights and remedies available to parties if misappropriation occurs. Employers can recover damages occurring from the misuse or unauthorized disclosure, and they may receive compensation for attorney’s fees.
