A Vermont Non-Disclosure Agreement is a crucial tool for protecting confidential information. Businesses often use this agreement to protect valuable trade secrets, especially when partnering with other companies or hiring new employees.
Vermont law recognizes the binding nature of NDAs and provides legal recourse for breaches. Understanding the authority of this document is essential for safeguarding valuable business assets.
Vermont NDA Laws Overview
- Governing Laws: Commerce and Trade – Trade Secrets. (Vt. Stat. tit. 9 § 4601 — 4609)
- Statute of Limitation: Plaintiffs have six years from the time of misappropriation to initiate legal action. (Vt. Stat. tit. 12 § 523)
- Trade Secret Definition (Vt. Stat. tit. 9 § 4601(3)):
“Trade secret” means information, including a formula, pattern, compilation, program, device, method, technique, or process, that:
(A) 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
(B) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
Are NDAs Enforceable in Vermont?
Yes, companies can enforce NDAs in Vermont. However, Vermont law imposes some restrictions. For example, legislation passed in 2018 states that bans businesses from requiring any potential or current employee, as a condition of employment, to sign an NDA that prevents them from participating in, reporting, disclosing, or opposing a sexual harassment investigation. [1] [2]
Furthermore, any settlement agreement dealing with sexual harassment must state that it doesn’t ban the claimant from:
- Engaging in concerted activities with other employees under federal or state labor laws
- Complying with or testifying discovery requests in a sexual harassment claim
- Participating in an investigation by a federal or state agency
- Filing a complaint with a federal or state agency
Finally, the agreement must also clarify that it doesn’t waive any claims or rights that may emerge post-settlement.
