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Compensation Non Disclosure Agreement

Compensation Non Disclosure Agreement Template for United States

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Key Requirements PROMPT example:

Compensation Non Disclosure Agreement

"Need a Compensation Non-Disclosure Agreement for our tech startup's HR department to protect salary information when sharing it with external compensation consultants, with specific provisions for handling equity compensation data and stock option plans."

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Document background
The Compensation Non-Disclosure Agreement is essential when organizations need to share sensitive compensation information with employees or third parties who require access to such data. This document becomes particularly important in contexts where salary structures, bonus calculations, equity arrangements, or benefit details need to be disclosed while maintaining confidentiality. The agreement must balance the employer's need for confidentiality with U.S. federal and state requirements regarding wage transparency and employee rights to discuss compensation.
Suggested Sections

1. Parties: Identification of the parties entering into the agreement

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Confidential Information: Definition and scope of protected compensation information

5. Non-Disclosure Obligations: Core obligations regarding confidentiality

6. Term and Termination: Duration of the agreement and termination conditions

Optional Sections

1. Return of Materials: Procedures for returning confidential information when physical or digital materials are involved

2. Permitted Disclosures: Exceptions to confidentiality obligations and specific carve-outs

3. Whistleblower Provisions: Specific language regarding whistleblower rights, particularly relevant for public companies or regulated industries

Suggested Schedules

1. Schedule A - Compensation Information: Detailed listing of protected compensation information

2. Schedule B - Authorized Recipients: List of individuals authorized to receive the confidential information

3. Appendix 1 - Security Procedures: Specific procedures for handling confidential information

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Confidential Information
Compensation Information
Disclosing Party
Receiving Party
Authorized Recipients
Permitted Purpose
Affiliate
Representatives
Compensation Data
Salary Information
Benefit Plans
Bonus Structures
Equity Arrangements
Commission Plans
Trade Secrets
Effective Date
Term
Disclosure Period
Confidentiality Period
Proprietary Information
Material Breach
Governing Law
Jurisdiction
Permitted Disclosures
Related Documents
Security Procedures
Unauthorized Disclosure
Industries

Defend Trade Secrets Act (DTSA) 2016: Federal law providing protection for trade secrets and requiring specific notice regarding whistleblower immunity provisions

Fair Labor Standards Act (FLSA): Federal law governing compensation-related information and wage transparency provisions that must be considered in compensation NDAs

National Labor Relations Act (NLRA): Federal law protecting employees' rights to discuss wages and working conditions; limits on prohibiting compensation discussions

Uniform Trade Secrets Act: State-level trade secret protection law adopted by most states with state-specific modifications

State Wage Transparency Laws: State-specific laws prohibiting pay secrecy and requiring salary range disclosure in various jurisdictions

State Non-Disclosure Requirements: State-specific variations in NDA enforcement standards and duration limitations

Employment Law Considerations: Legal framework covering at-will employment implications and employee vs. independent contractor distinctions

Contract Law Fundamentals: Basic contract law requirements including consideration, reasonableness of restrictions, and enforcement mechanisms

Whistleblower Protection Provisions: SEC whistleblower provisions and industry-specific protections that must be acknowledged in the NDA

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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