Does Washington's trade secrets act wipe out our confidentiality clause, and what can an employee NDA not cover?
No. The Uniform Trade Secrets Act (chapter 19.108 RCW) displaces conflicting tort, restitutionary and other law of Washington pertaining to civil liability for misappropriation of a trade secret, but does not affect contractual or other civil liability or relief that is not based upon misappropriation of a trade secret (RCW 19.108.900); the Supreme Court has said a contractual provision designed to protect against disclosure is not subject to displacement by the Act (Boeing v. Sierracin). But under RCW 49.44.211 a provision in an agreement between an employer and an employee not to disclose or discuss conduct, or the existence of a settlement involving conduct, that the employee reasonably believed to be illegal discrimination, illegal harassment, illegal retaliation, a wage and hour violation, or sexual assault, or that is recognized as against a clear mandate of public policy, is void and unenforceable; the section does not prohibit protecting trade secrets, proprietary information or confidential information that does not involve illegal acts, nor a provision keeping a settlement amount confidential. That section defines its own reach, and the reach is the part a drafter needs: the prohibited provisions "concern conduct that occurs at the workplace, at work-related events coordinated by or through the employer, between employees, or between an employer and an employee, whether on or off the employment premises", and they "include those contained in employment agreements, independent contractor agreements, agreements to pay compensation in exchange for the release of a legal claim, or any other agreement between an employer and an employee". A nondisclosure or nondisparagement provision in any agreement signed by a Washington-resident employee "is governed by Washington law", the section's own provisions "are to be liberally construed to fulfill its remedial purpose", and it is retroactive from June 9, 2022 only to invalidate such provisions in agreements created before that date and agreed to at the outset of or during employment: not in an agreement settling a legal claim (RCW 49.44.211(9)-(11)). What the Act displaces other law FOR is defined in it: "misappropriation" is acquisition by one who knows or has reason to know the secret was obtained by improper means, or disclosure or use without consent by one who used improper means or knew the knowledge came through improper means, under a duty of secrecy, or by accident or mistake, and "improper means" includes "breach or inducement of a breach of a duty to maintain secrecy" (RCW 19.108.010). A complainant recovers actual loss and unjust enrichment, and for wilful and malicious misappropriation exemplary damages up to twice that award (RCW 19.108.030), and where "a claim of misappropriation is made in bad faith, a motion to terminate an injunction is made or resisted in bad faith, or wilful and malicious misappropriation exists, the court may award reasonable attorney's fees to the prevailing party" (RCW 19.108.040): a fee rule that cuts both ways, since the prevailing party can be the accused. The action must be brought within three years of when the misappropriation was or should have been discovered, and a continuing misappropriation is a single claim (RCW 19.108.060). What the Act protects is also defined: a "trade secret" is information that "[d]erives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use" AND "[i]s the subject of efforts that are reasonable under the circumstances to maintain its secrecy" (RCW 19.108.010(4)). Information that fails either half is not a trade secret, and then the confidentiality clause is the only thing left standing, which is the practical reason to have one.
The trap
An employer that asks for a prohibited nondisclosure or nondisparagement provision violates the section by asking: "[i]t is a violation of this section for an employer to request or require that an employee enter into any agreement provision that is prohibited by this section" (RCW 49.44.211(4)). Trying to enforce one is a separate violation, and "enforce" is drawn wide: "whether through a lawsuit, a threat to enforce, or any other attempt to influence a party to comply" (subsection (5)), so a reminder letter counts. Discharging or retaliating against the employee for disclosing the conduct is a third (subsection (3)). An employer who violates the section after June 9, 2022 "is liable in a civil cause of action for actual or statutory damages of $10,000, whichever is more, as well as reasonable attorneys' fees and costs" (subsection (7)), and subsection (11) reaches back to invalidate provisions in agreements created before June 9, 2022 that were agreed to at the outset of or during employment. For this section "employee" means a current, former, or prospective employee or independent contractor, so a confidentiality clause copied into a contractor agreement is within the section.
as of 2026-09-16
7 authorities
statuteRCW 19.108.900enactment date not established
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(1) This chapter displaces conflicting tort, restitutionary, and other law of this state pertaining to civil liability for misappropriation of a trade secret. (2) This chapter does not affect: (a) Contractual or other civil liability or relief that is not based upon misappropriation of a trade secret; or (b) Criminal liability for misappropriation of a trade secret. [ 1981 c 286 s 7.]
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Sierracin argues that the trial court erred by not consolidating all of these claims into one for misappropriation under the Uniform Trade Secrets Act, RCW 19.108. We reject this argument. RCW 19.108.900 specifically provides, in part: (1) This chapter displaces conflicting tort, restitutionary, and other law of this state pertaining to civil liability for misappropriation of a trade secret. (2) This chapter does not affect: (a) Contractual or other civil liability or relief that is not based upon misappropriation of a trade secret. . . See also Proceedings in Committee of the Whole, Uniform Trade Secrets Act of the National Conference of Commissioners on Uniform State Laws, at 6 (Aug. 3, 1978). The act merely displaces conflicting tort, restitutionary and other law regarding civil liability for misappropriation. The United States Supreme Court has held that proof of trade secrets is not required for breach of confidentiality claims, which may be brought independently of trade secrets claims. E.I. Du Pont De Nemours Powder Co. v. Masland, 244 U.S. 100, 102 , 61 L. Ed. 1016 , 37 S. Ct. 575 (1917); Monolith Portland Midwest Co. v. Kaiser Aluminum & Chem. Corp., 407 F.2d 288, 293 (9th Cir. 1969). A confidential relationship alone is enough to prohibit disclosure. Island Air, Inc. v. LaBar, 18 Wn. App. 129, 138-39 , 566 P.2d 972 (1977). Furthermore, a contractual provision designed to protect against disclosure would also not be subject to displacement by the Uniform Trade Secrets Act. RCW 19.108.900(2)(a). The Committee specifically dealt with this question and decided as follows: (1) Should the Act cover contract liability as well as tort liability? The answer then was: No. It is the judgement of the Committee that the answer still should be no, and that the Act limit itself to the tort situation. Report of Proceedings, at 6. The trial court did not err in refusing to consolidate Boeing's claims.
statuteRCW 49.44.211enactment date not established
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(1) A provision in an agreement by an employer and an employee not to disclose or discuss conduct, or the existence of a settlement involving conduct, that the employee reasonably believed under Washington state, federal, or common law to be illegal discrimination, illegal harassment, illegal retaliation, a wage and hour violation, or sexual assault, or that is recognized as against a clear mandate of public policy, is void and unenforceable. Prohibited nondisclosure and nondisparagement provisions in agreements concern conduct that occurs at the workplace, at work-related events coordinated by or through the employer, between employees, or between an employer and an employee, whether on or off the employment premises. Prohibited nondisclosure and nondisparagement provisions include those contained in employment agreements, independent contractor agreements, agreements to pay compensation in exchange for the release of a legal claim, or any other agreement between an employer and an employee. (2) This section does not prohibit the enforcement of a provision in any agreement that prohibits the disclosure of the amount paid in settlement of a claim. (3) It is a violation of this section for an employer to discharge or otherwise discriminate or retaliate against an employee for disclosing or discussing conduct that the employee reasonably believed to be illegal harassment, illegal discrimination, illegal retaliation, wage and hour violations, or sexual assault, that is recognized as illegal under state, federal, or common law, or that is recognized as against a clear mandate of public policy, occurring in the workplace, at work-related events coordinated by or through the employer, between employees, or between an employer and an employee, whether on or off the employment premises. (4) It is a violation of this section for an employer to request or require that an employee enter into any agreement provision that is prohibited by this section. (5) It is a violation of this section for an employer to attempt to enforce a provision of an agreement prohibited by this section, whether through a lawsuit, a threat to enforce, or any other attempt to influence a party to comply with a provision in any agreement that is prohibited by this section. (6) This section does not prohibit an employer and an employee from protecting trade secrets, proprietary information, or confidential information that does not involve illegal acts. (7) An employer who violates this section after June 9, 2022, is liable in a civil cause of action for actual or statutory damages of $10,000, whichever is more, as well as reasonable attorneys' fees and costs. (8) For the purposes of this section, "employee" means a current, former, or prospective employee or independent contractor. (9) A nondisclosure or nondisparagement provision in any agreement signed by an employee who is a Washington resident is governed by Washington law. (10) The provisions of this section are to be liberally construed to fulfill its remedial purpose. (11) As an exercise of the state's police powers and for remedial purposes, this section is retroactive from June 9, 2022, only to invalidate nondisclosure or nondisparagement provisions in agreements created before June 9, 2022, and which were agreed to at the outset of employment or during the course of employment. This subsection allows the recovery of damages only to prevent the enforcement of those provisions. This subsection does not apply to a nondisclosure or nondisparagement provision contained in an agreement to settle a legal claim. [ 2022 c 133 s 2.]
statuteRCW 19.108.010enactment date not established
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Unless the context clearly requires otherwise, the definitions set forth in this section apply throughout this chapter. (1) "Improper means" includes theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means; (2) "Misappropriation" means: (a) Acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means; or (b) Disclosure or use of a trade secret of another without express or implied consent by a person who: (i) Used improper means to acquire knowledge of the trade secret; or (ii) At the time of disclosure or use, knew or had reason to know that his or her knowledge of the trade secret was (A) derived from or through a person who had utilized improper means to acquire it, (B) acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use, or (C) derived from or through a person who owed a duty to the person seeking relief to maintain its secrecy or limit its use; or (iii) Before a material change of his or her position, knew or had reason to know that it was a trade secret and that knowledge of it had been acquired by accident or mistake. (3) "Person" means a natural person, corporation, business trust, estate, trust, partnership, association, joint venture, government, governmental subdivision or agency, or any other legal or commercial entity. (4) "Trade secret" means information, including a formula, pattern, compilation, program, device, method, technique, or process that: (a) Derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and (b) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy. [ 1981 c 286 s 1.]
statuteRCW 19.108.030enactment date not established
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(1) In addition to or in lieu of injunctive relief, a complainant may recover damages for the actual loss caused by misappropriation. A complainant also may recover for the unjust enrichment caused by misappropriation that is not taken into account in computing damages for actual loss. (2) If wilful and malicious misappropriation exists, the court may award exemplary damages in an amount not exceeding twice any award made under subsection (1). [ 1981 c 286 s 3.]
statuteRCW 19.108.040enactment date not established
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If a claim of misappropriation is made in bad faith, a motion to terminate an injunction is made or resisted in bad faith, or wilful and malicious misappropriation exists, the court may award reasonable attorney's fees to the prevailing party. [ 1981 c 286 s 4.]
statuteRCW 19.108.060enactment date not established
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An action for misappropriation must be brought within three years after the misappropriation is discovered or by the exercise of reasonable diligence should have been discovered. For the purposes of this section, a continuing misappropriation constitutes a single claim. [ 1981 c 286 s 6.]