What to Know About NDAs in Texas
In Texas, NDAs are commonly used alongside employment contracts to safeguard confidential information. They are enforceable when they meet specific legal criteria, including:
- Clear Definitions: Specify what constitutes confidential information
- Legitimate Business Interests: Protect trade secrets or proprietary business information
- Reasonable Restrictions: Avoid overly broad or unnecessary limitations
- Compliance with Reporting Laws: NDAs cannot prevent employees from reporting illegal activities like harassment or discrimination
Texas follows the Uniform Trade Secrets Act (Tex. Civ. Prac. & Rem. Code § 134A.001 – § 134A.008), which outlines protections for trade secrets and related disclosures.
How Long Can a Texas NDA Last?
The duration of an NDA in Texas depends on the type of information being protected:
- General Business Information: Typically 2–5 years
- Trade Secrets: May be protected indefinitely, as long as confidentiality is maintained
To ensure enforceability, specify reasonable time frames unless the NDA covers trade secrets.
Are NDAs Valid and Enforceable in Texas?
Yes, NDAs are valid and enforceable in Texas when they:
- Clearly define what information is protected.
- Serve to protect legitimate business interests (such as trade secrets).
- Avoid unreasonably broad restrictions.
Avoid including terms that prevent employees from reporting illegal activities like harassment or discrimination.
Texas courts may refuse to enforce NDAs that are vague, overly broad, or unnecessary.
How to Make an NDA Enforceable?
To ensure your NDA complies with Texas law and complements related legal documents like non-compete agreements:
- Specify the Purpose: Define what constitutes confidential information (e.g., client lists, financial data).
- Reasonable Scope: Limit restrictions to necessary details without imposing broad bans.
- Include Limitations: Allow employees to share concerns related to discrimination or illegal acts.
Example Clause:
“This NDA excludes information disclosed under mandatory reporting laws, such as information related to harassment or discrimination claims.”
Texas Non-Disclosure Sample
Below, you can view a sample Texas NDA. Use our document editor to start creating your agreement using this template.
Create Your Texas NDA Online
Legal Templates makes it easy to create a Texas non-disclosure agreement that aligns with state-specific requirements:
- Customize your NDA to suit your business or personal needs.
- Ensure compliance with Texas laws, including trade secret protection.
- Quickly edit, print, or download your document for easy sharing.
With our user-friendly editor, you can draft a professional, legally sound Texas NDA in minutes—no legal expertise required.
Frequently Asked Questions
What is considered a trade secret under Texas law?
Trade secrets include formulas, processes, and financial information that provide a business advantage.
Can NDAs be indefinite in duration?
Yes, but only for trade secrets. General business information should have a reasonable time limit.
What happens if an NDA is breached?
The affected party may pursue legal action for damages or request an injunction to stop further disclosures.
