A Virginia Non-Disclosure Agreement is a crucial legal document that helps safeguard sensitive information from being disclosed to unauthorized parties. It is typically used by employers to protect trade secrets and confidential data, especially during the hiring process or when entering into partnerships.

By signing, the involved parties agree to maintain confidentiality and are held liable for any breaches that lead to the release of proprietary information.

Governing Laws: Uniform Trade Secrets Act. (Va. Code § 59.1-336 – 59.1-343)
Statute of Limitation: Legal action for a breach of contract should be initiated within three years from the time the breach occurred. (Va. Code § 59.1-340)
Trade Secret Definition (Va. Code § 59.1-336):

“Trade secret” means information, including but not limited to, a formula, pattern, compilation, program, device, method, technique, or process, that:

1. 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

2. Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

Are NDAs Enforceable in Virginia?

Yes, NDAs are enforceable in Virginia. However, 2023 legislation updated its existing NDA law to make it more strict. Previously, the law only banned employers from requiring an NDA as a condition of employment if it intended to hide details relating to a sexual assault claim. [1]

Now, it bans employers from mandating NDAs if they intend to hide details relating to a sexual assault or a sexual harassment claim. [2]