Confidentiality
Define protected information, permitted disclosures, handling requirements, exceptions for required disclosures, and return or destruction obligations at termination.
A well-drafted covenant reduces ambiguity, supports enforceability in court, and protects business assets. It balances employer interests and employee mobility and must align with ESIGN and applicable state contract law to be effective when executed electronically.
HR, in-house counsel, and hiring managers typically prepare and issue Employee Covenant Forms during recruiting or onboarding to document restrictive obligations.
Keep signed copies in personnel records and provide a countersigned copy to the employee; involve legal counsel when state law or senior roles require tailored language.
Responsible for issuing the covenant, tracking acceptance, maintaining the signed record in the personnel file, and coordinating with legal when disputes or compliance questions arise.
Reviews and approves covenant language for enforceability, advises on governing law and consideration, and handles enforcement or litigation strategy when breaches occur.
Define protected information, permitted disclosures, handling requirements, exceptions for required disclosures, and return or destruction obligations at termination.
Specify prohibited solicitation of clients, customers, or employees, describe duration after separation, and set boundaries by client lists or account definitions.
State prohibited competing activities, geographic limits, duration, and carve-outs; ensure reasonableness to improve enforceability under state law.
Assign inventions and work product created during employment, identify pre-existing IP, and require prompt disclosure and cooperation on filings.
Document the consideration supporting the covenant, such as continued employment, signing bonus, promotion, or other bargained-for benefits.
Describe remedies such as injunctive relief, liquidated damages where valid, attorneys' fees, and survival of confidentiality provisions.
Choose a platform that supports PDF and DOCX formats, audit trails, and the required signer authentication level for your jurisdiction and industry.
Provide covenant with the employment offer when possible.
Allow at least several days for employee review.
Record the signature date as the effective date.
Keep the executed form in personnel files.
Reassess for role changes or new consideration.
| Criteria | Document Type | Primary Purpose |
|---|---|---|
| Employee Covenant | comprehensive | restrict conduct and assign ip |
| NDA | limited | protect confidential information only |
| Non-compete only | narrow | prevent competitive employment |
| IP Assignment | specific | transfer invention rights |
| signNow | DocuSign | Adobe Sign | PandaDoc | HelloSign | |
|---|---|---|---|---|---|
| Starting Price | $8/user/mo | $15/user/mo | $14/user/mo | $19/user/mo | $15/user/mo |
| Free Trial | 7-day free trial | Varies | Varies | Varies | Varies |
| Bulk Send | Yes | Yes | Yes | Yes | No |
| Audit Trail | Yes | Yes | Yes | Yes | Yes |
| HIPAA Compliant | Yes | Yes | Yes | No | No |
Legal drafts terms and HR approves final language
Provide covenant with offer and supporting documents
Employee signs and dates the agreement
Store signed copy and audit trail for future enforcement