Legal Question in Business Law in California

Re: confidentiality agreement

It does not sound at all unreasonable for a janitorial service to be asked to sign a confidentiality agreement, if the material they get to casually view is truly sensitive. It does put the owner of the service in somewhat of a difficult situation. Even if he/she gets employees to sign similar confidentiality agreements, clearly they would not be in as vulberable a position as the company would. It might, however, put them on notice of their personal liability and probably the risk is an insurable risk. Have the owner check out liability coverage. If that is difficult, he can talk to the customer about such coverage, and additional charges to cover such payment. This is not a simple problem.

Re: confidentiality agreement

If the janitorial franchise wants the account, it appears it has no alternative but to sign the agreement. It may mean the owner of the franchise or administration will have to be more careful in their assignment of individuals for work at that location and more screening may be necessary. Make certain they each receive direction in this regard and sign off on their own agreement with the janitorial franchise. Insurance may be available. 800-685-6950

Re: confidentiality agreement

Whether to sign the confidentiality agreement or not is as much a matter of business judgment as a question for the company lawyer. A lawyer should, however, review any proposed agreement to advise the business on whether the proposed terms seem reasonable and fair.

An employer is liable for its employees' indiscretions in the course and scope of employment, so if a janitor pilfers sensitive documents while emptying wastebaskets (for example), the employer can be held liable for misappropriation of trade secrets.