Companies mitigate the risk of employees sharing trade secrets by often requiring employees to sign which type of document?

• A. Non-disclosure agreement (NDA)
• B. Confidentiality agreement
• C. Employee handbook
• D. Trade secret contacts

Answer: (A)

The main idea is to bind employees legally to keep sensitive information secret. A non-disclosure agreement establishes that promise, clearly defining what information is confidential, how it must be protected, who may access it, and for how long the obligation lasts. It also spells out the consequences of disclosure, which gives the company a strong legal remedy and a clear deterrent against sharing trade secrets. While a confidentiality agreement can serve a similar purpose, the term most commonly used to protect trade secrets in practice is the NDA. An employee handbook may outline confidentiality in general, but it doesn’t create a dedicated, enforceable secrecy obligation on its own. A trade secret contacts document isn’t a recognized tool for this purpose.