What happens if I don't disclose a restrictive covenant?

You risk being sued for tortious interference, breach of contract, and misappropriation of trade secrets. Employers often terminate employees immediately upon discovering undisclosed restrictive covenants to avoid legal liability.

How can I safely disclose an NDA without violating it?

Provide a high-level summary of the restrictions (e.g., non-compete duration, geographic scope) without revealing the confidential trade secrets or proprietary information protected by the agreement.

A TermScore is an AI-generated risk rating from 0 to 100 that evaluates the fairness and risk level of any legal document. A score of 86-100 means the contract is highly favorable, while 0-30 indicates dangerous terms you should walk away from.

What types of documents can TermScore analyze?

TermScore analyzes any legal document including freelance contracts, employment agreements, residential leases, NDAs, brand sponsorship deals, SaaS vendor agreements, and rental applications. Upload PDFs, Word documents, or images.

How much does TermScore cost?

TermScore offers a free plan with 3 scores per month. The Team plan is $15/month for 30 scores, and the Professional plan is $50/month for 500 scores with team collaboration features.

Is my document data secure?

Yes. Documents are processed in memory and analysis results are stored encrypted. TermScore never shares your document data with third parties and you can delete your data at any time from your dashboard.

Do I have to disclose my existing employment NDA to a new employer during the hiring process?

Q: Do I have to disclose my existing employment NDA to a new employer?

Yes. While not always a legal mandate in every jurisdiction, failing to disclose an existing NDA can lead to breach of contract claims, termination of your new employment, and potential litigation against both you and your new employer.

Do I have to disclose my existing employment NDA to a new employer?

Yes. You are legally and professionally obligated to disclose any existing Non-Disclosure Agreements (NDAs) or restrictive covenants that could impact your ability to perform your new job. Failing to disclose these agreements exposes you to immediate termination and potential lawsuits for breach of contract or tortious interference.

Key takeaway: Transparency is your best defense. Employers prefer to know about potential legal hurdles before they invest in your onboarding, rather than discovering them through a cease-and-desist letter from your former employer.

The Legal Risks of Non-Disclosure

When you sign a new employment contract, you typically sign a representation stating that you are not subject to any agreements that prevent you from performing your duties. If you have an undisclosed NDA or non-compete, you are effectively lying in your new contract.

Potential Consequences

Immediate Termination: Most employment contracts include a 'for cause' termination clause triggered by misrepresentation during the hiring process.
Litigation: Your former employer may sue you for breach of contract, and your new employer may sue you for damages if they are dragged into legal proceedings.
Injunctive Relief: A court may issue an injunction, preventing you from working in your new role while the dispute is litigated, which can last 6 to 18 months.

Action Item: Review your current employment contract for a 'Representations and Warranties' section. If you sign a document stating you have no conflicting obligations, you are legally bound by that statement.

How to Evaluate Your Existing NDA

Not all NDAs are created equal. Before disclosing, you must understand the scope of your current obligations. Use the following table to categorize your risks.

Restriction Type	Typical Duration	Risk Level
Standard NDA	Indefinite	Low (if limited to trade secrets)
Non-Solicitation	12-24 Months	Medium
Non-Compete	6-12 Months	High
Non-Disparagement	Indefinite	Low

Steps to Assess Your Risk

Identify the 'Restricted Information': Does the NDA cover general skills or specific proprietary trade secrets?
Check Geographic Scope: Is the non-compete limited to a specific city, state, or the entire country?
Verify Enforceability: Research your state laws (e.g., California generally prohibits non-competes, while other states enforce them strictly).

Action Item: Create a summary document of your restrictive covenants. Focus on the 'what' (the restriction) and the 'how long' (the duration) rather than the 'why' (the confidential data).

How to Disclose Without Violating Your NDA

You do not need to provide your new employer with the full text of your old NDA, which might contain sensitive information. Instead, provide a summary that allows them to assess the risk.

Be Precise: State the exact date the agreement expires.
Be Honest: Do not downplay the scope of the restrictions.
Consult Counsel: If the NDA is complex, have an attorney draft a 'disclosure letter' that protects your interests.

Key takeaway: Your goal is to show the new employer that you are a person of integrity who respects legal obligations. This builds trust, even if the disclosure creates a temporary hurdle.

When to Seek Legal Advice

If your new employer asks you to sign a document that contradicts your existing NDA, you are in a 'conflict of obligations' scenario. You should seek legal counsel if:

The new employer insists you ignore your existing NDA.
The NDA is overly broad (e.g., prevents you from working in your entire industry).
You are moving to a direct competitor of your former employer.

Action Item: If you are unsure about the enforceability of your current agreement, do not guess. Consult with an employment lawyer to determine if your NDA is 'reasonable' under current state law.

Streamline Your Contract Review

Navigating the intersection of old NDAs and new employment offers is complex and high-stakes. TermScore simplifies this process by automatically analyzing your existing contracts to identify restrictive covenants, non-competes, and potential conflicts. By uploading your documents to TermScore, you can gain a clear, AI-driven assessment of your legal obligations in seconds, ensuring you enter your new role with full confidence and transparency.