Free Employee Confidentiality & Invention Assignment Template
An employee confidentiality and invention assignment agreement with prior inventions list, state-law personal-time invention carve-out and whistleblower protections.
An employee confidentiality and invention assignment agreement protects an employer's confidential information and gives the employer ownership of work-related inventions. Several states, including California, Delaware, Illinois, Minnesota, North Carolina and Washington, prohibit assigning inventions made on your own time without company resources that are unrelated to the business.
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EMPLOYEE CONFIDENTIAL INFORMATION AND INVENTION ASSIGNMENT AGREEMENT
This Agreement is made on [DATE] between [COMPANY LEGAL NAME] ("Company") and [EMPLOYEE NAME] ("Employee"), in consideration of Employee's employment and [OTHER CONSIDERATION].
1. CONFIDENTIAL INFORMATION. Employee will keep confidential and use only for the Company's benefit all non-public information of the Company, its customers and partners that Employee learns through employment, including trade secrets, technical data, source code, product plans, customer information and financial information ("Confidential Information"). This does not include information that is public through no fault of Employee, known to Employee before employment, received from a third party without restriction, or Employee's general skills and experience. These obligations continue after employment for [3] years, and for trade secrets while they remain trade secrets.
2. INVENTIONS. "Inventions" means inventions, discoveries, designs, software, works of authorship, developments and improvements, whether or not patentable or registrable.
3. ASSIGNMENT. Employee assigns to the Company all rights in Inventions that Employee creates, alone or with others, during employment that: (a) relate to the Company's business or its actual or demonstrably anticipated research or development; (b) result from work Employee performs for the Company; or (c) are created using the Company's equipment, supplies, facilities or Confidential Information ("Company Inventions").
4. EXCLUDED INVENTIONS AND STATE-LAW NOTICE. This Agreement does not apply to an Invention that Employee develops entirely on Employee's own time without using the Company's equipment, supplies, facilities or trade secret information, unless it relates to the Company's business or actual or demonstrably anticipated research or development, or results from work Employee performed for the Company. This limitation follows laws such as California Labor Code Section 2870 and similar laws in Delaware, Illinois, Kansas, Minnesota, New Jersey, New York, North Carolina, Utah and Washington, and will be applied as required by the law of the state where Employee works. A copy of the applicable statute is attached as Exhibit B where required.
5. PRIOR INVENTIONS. Employee lists in Exhibit A all Inventions Employee created before employment that Employee wants to exclude ("Prior Inventions"). If Employee incorporates a Prior Invention into Company work, Employee grants the Company a non-exclusive, perpetual, royalty-free licence to use it as part of that work.
6. DISCLOSURE AND COOPERATION. Employee will promptly disclose Company Inventions to the Company and, during and after employment, sign documents reasonably needed to secure the Company's rights, at the Company's expense.
7. MORAL RIGHTS. To the extent permitted by law, Employee waives moral rights in Company Inventions.
8. RETURN OF PROPERTY. On leaving, Employee will return Company property and delete Confidential Information from personal devices, keeping only documents about Employee's own compensation and benefits.
9. NO CONFLICTING OBLIGATIONS. Employee will not bring to the Company or use any confidential information of a former employer or other third party.
10. PROTECTED RIGHTS. Nothing in this Agreement prevents Employee from reporting possible violations of law to a government agency, discussing wages and working conditions as protected by the National Labor Relations Act, disclosing information about unlawful acts in the workplace, or testifying truthfully.
11. DEFEND TRADE SECRETS ACT NOTICE (18 U.S.C. § 1833(b)). Employee will not be held liable under any federal or state trade secret law for disclosing a trade secret in confidence to a government official or an attorney solely to report or investigate a suspected violation of law, or in a document filed under seal in a lawsuit. An individual suing for retaliation for reporting a suspected violation may disclose the trade secret to their attorney and use it in the proceeding if filed under seal.
12. NO EMPLOYMENT PERIOD. This Agreement does not guarantee employment for any period [or change at-will status].
13. GOVERNING LAW. This Agreement is governed by the laws of [STATE WHERE EMPLOYEE WORKS].
GENERAL PROVISIONS
(a) Notices. Notices must be in writing and sent to the addresses or emails above (or as later updated by notice). Email notice is effective when sent, unless the sender receives a delivery failure message.
(b) Entire agreement. This agreement, with any schedules and exhibits, is the entire agreement between the parties on its subject and replaces all prior discussions and agreements on that subject.
(c) Amendments and waivers. Changes must be in writing and signed by both parties. A failure or delay in enforcing any term is not a waiver of it.
(d) Severability. If any provision is found unenforceable, it will be limited to the minimum extent necessary and the rest of this agreement will remain in effect.
(e) Assignment. Neither party may assign this agreement without the other party's written consent, except to a successor in a merger or sale of substantially all of its business, on notice.
(f) Relationship. Nothing in this agreement creates a partnership, joint venture or agency relationship unless expressly stated.
(g) Counterparts and electronic signatures. This agreement may be signed in counterparts and by electronic signature, each of which is an original and together form one agreement.
(h) Independent advice. Each party has had the opportunity to review this agreement with its own legal counsel and signs it voluntarily.
COMPANY: ______________________ Name/Title: ______________ Date: __________
EMPLOYEE: _____________________ Date: __________
EXHIBIT A: Prior Inventions (title, date, brief description, or "None")
EXHIBIT B: Text of applicable state invention assignment statute
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This free template is provided by ClauseAudit for general informational purposes and is not legal advice. Have it reviewed before use. Replace all [BRACKETED] placeholders.When to use this template
- Hiring employees who will create software, designs, content or inventions.
- Before an investment, when investors check that the company owns its IP.
- An employee wants to protect side projects and prior work.
How to fill it in
- List prior inventions in Exhibit A; this is your main protection as an employee.
- Keep the state-law carve-out and attach the statute where your state requires notice.
- Set a confidentiality period for non-trade-secret information.
- Keep protected rights and the DTSA notice.
- Use the law of the state where the employee works.
Key clauses to check
- Scope of assignment
- Should cover work-related inventions only.
- State carve-out
- Several states void assignments of unrelated personal-time inventions.
- Prior inventions
- Listing them avoids later ownership disputes.
- DTSA notice
- Required for employers to recover certain damages under federal trade secret law.
- Protected rights
- Confidentiality cannot block legally protected disclosures.
State-specific notes: CA, TX, NY, FL, IL
Employment rules that affect this template in the five largest states, summarized as of 2025. Laws change and cities add their own rules, so confirm the current law before signing.
California
- Employers cannot require employees who primarily live and work in California to agree to another state’s law or courts for employment disputes (Labor Code §925).
- Labor Code §2870 bars assignment of inventions made on the employee’s own time without company resources that do not relate to the business, and employers must give written notice of this.
Texas
- Texas has no statute limiting invention assignments, so the agreement’s scope controls; keep it limited to work-related inventions.
New York
- Since 2023, Labor Law §203-f bars assignment of inventions made on the employee’s own time without company resources that do not relate to the business.
Florida
- Florida has no statute limiting invention assignments; the agreement’s scope controls.
Illinois
- The Employee Patent Act bars assignment of inventions made entirely on the employee’s own time without company resources that do not relate to the business.
Another state? See the rules for all 50 states and DC.
Frequently asked questions
Can my employer own my side project?
Only if it relates to the employer's business, used company resources or came from your job, in states with invention protection laws. Otherwise the agreement should exclude it.
Which states protect employee inventions?
California, Delaware, Illinois, Kansas, Minnesota, New Jersey, New York, North Carolina, Utah and Washington have statutes of this kind.
What should I list as prior inventions?
Anything you created before the job that you want to keep, such as apps, code libraries, designs or written works.
Do I have to sign an invention assignment agreement?
An employer can usually require it as a condition of employment, and refusing may mean losing the offer. You can still ask questions and negotiate, such as listing prior inventions or excluding a side project in writing. Several states limit how far these agreements can reach into inventions made on your own time without company resources, so the clause may be narrower in practice.
Is an employee confidentiality agreement enforceable after I quit?
Generally yes. Confidentiality obligations usually survive the end of employment, and trade secret protections can last as long as the information stays secret. However, courts may not enforce overly broad definitions that cover general skills or public information. Federal law also protects reporting suspected violations to government agencies, and some states limit secrecy around workplace harassment or discrimination.
Want to check if a contract is fair before you sign?
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Read before you sign
- I Signed an NDA and Now I'm a Whistleblower. What's Protected?NDAs cannot lawfully stop you reporting suspected illegal conduct to regulators. Here is how whistleblower protections interact with confidentiality agreements.
- Are Confidentiality Agreements Enforceable? When Courts Enforce an NDA and When They Do NotAre confidentiality agreements enforceable? Usually yes. See when US courts enforce an NDA, the federal limits, and the clauses that make one fail.
- Confidentiality Agreement vs NDA: Is There Any Difference?Confidentiality agreement vs NDA: legally the same kind of contract. The label matters less than the definition, exclusions, term and who is bound.
- Employee NDA vs Contractor NDA: What Should Differ?Employees and independent contractors are often given the same NDA, but their situations differ. Here is what should change for contractors and what employees should check.
This free template is general information, not legal advice, and is no substitute for a qualified attorney. Laws vary by state; have it reviewed by a lawyer before you use or sign it.