Here’s your practical guide on how and when to use NDAs

As businesses grow, owners may increasingly rely on key employees and HR professionals to manage functions owners don’t directly oversee. Key employees and HR professionals are typically those employees who have access to important, confidential business information. These individuals often gain access to confidential operational details, employee information, and other sensitive data. A common question that arises: When should employers use nondisclosure agreements (NDAs)?

While NDAs aren’t required in every situation, they are one of the most effective tools for protecting valuable business information—especially in Wisconsin, where confidentiality agreements are generally enforceable when drafted reasonably. This article provides basic guidance to help Wisconsin employers evaluate when NDAs are appropriate.

Why NDAs matter for key employees

In many companies, key employees run critical parts of the business—customer relationships, pricing, financial oversight, technical processes, or strategic planning. When an employee holds significant authority and the owner has limited insight or specialized knowledge into those operations, the risk of losing sensitive and private information increases if that employee departs.