Are Non-Disclosure Agreements (NDAs) Enforceable in Nebraska? A Plain-English Guide

Non-disclosure agreements, or NDAs, show up everywhere in business—from hiring and client contracts to joint ventures and mergers. At their heart, NDAs are about trust: one person shares sensitive information, and the other promises to protect it. But in Nebraska, the real question is whether those agreements actually hold up in court. The answer is yes, but only if they’re drafted carefully. A Nebraska judge will enforce an NDA that’s specific, reasonable, and tied to a legitimate business purpose. Agreements that are too broad, last too long, or try to silence someone in ways that clash with public policy usually won’t survive. This guide walks through how NDAs work in Nebraska, what courts look for, and what mistakes to avoid if you’re drafting or signing one.

What an NDA Actually Does

An NDA is a contract that sets the rules for how private information can be shared and used. Sometimes both parties agree to keep information secret (a mutual NDA), like in merger talks. Other times only one party is restricted (a unilateral NDA), such as when an employer gives an employee access to client lists or proprietary software.

The key is clarity. A good NDA defines what counts as confidential, why the information is being shared, and what happens if someone breaks the rules. It also makes clear what isn’t confidential—like information that’s already public, already known to the recipient, or developed independently. Without these boundaries, the agreement risks being tossed aside as too vague.

How Nebraska Courts Look at NDAs

When a Nebraska court reviews an NDA, it asks a simple question: is this fair and reasonable? If the agreement looks more like a weapon than a shield, it won’t be enforced.

Nebraska follows the Nebraska Trade Secrets Act (Neb. Rev. Stat. §§ 87-501 to 87-507), which sets the framework for protecting trade secrets and other sensitive business information. Under this law and related case decisions, NDAs are more likely to be enforced when they:

• Protect a legitimate business interest, like trade secrets, client lists, or proprietary processes—not just general know-how.

• Are specific in scope, clearly identifying what’s confidential instead of sweeping in “everything under the sun.”

• Have a reasonable time limit. Courts rarely enforce “forever” NDAs unless they’re tied to a true trade secret, like a secret formula. One to five years is more typical.

Importantly, Nebraska law draws a hard line: no NDA can prevent someone from reporting a crime, testifying in court, or disclosing harassment or misconduct. Clauses that try to do so are void.

Drafting an NDA That Works in Nebraska

An enforceable NDA doesn’t need to be stuffed with dense legalese. In fact, the clearer the better. The most effective agreements describe what’s confidential, explain the reason for protection, and set a timeframe that makes sense.

For example, an NDA covering customer lists in a fast-changing industry might only need to last two years. An NDA protecting a proprietary manufacturing process might justify a longer term. The point is that courts look for balance.

By contrast, a sloppily written NDA can backfire. If it’s overly broad or ambiguous, it creates false security and may be unenforceable altogether. That’s why even short NDAs benefit from legal review before being signed.

The Bottom Line

NDAs are enforceable in Nebraska, but only when drafted with care. They’re tools for protecting valuable business information—not for unfairly restricting someone’s future opportunities. If you’re using or signing an NDA, make sure it’s tailored to the situation, grounded in Nebraska law, and written clearly enough that a judge would find it fair.

Frequently Asked Questions

Are NDAs legally binding in Nebraska?

Yes. Courts enforce them if they are reasonable, specific, and tied to a legitimate business interest.

How long can an NDA last in Nebraska?

Most NDAs last one to five years. Only true trade secrets can justify indefinite protection.

Can an NDA cover public information?

No. Only genuinely confidential information is protected.

What happens if someone breaches an NDA?

The harmed party can sue for damages or ask the court to stop further disclosure through an injunction.

Can an NDA stop me from reporting illegal activity?

No. NDAs cannot block testimony in court, reporting crimes, or cooperating with investigations.