Recession or not, my clients and colleagues are doing business, the smart ones even capturing a little more space in their particular niche as the timid and fearful hang to the rear. As you do so, however, keep in mind that if you sign contracts too quickly (understandably not wanting to lose the opportunity), you run the risk of getting caught up in those little "gotchas" that we fail to recognize until it's too late.

Non-Disclosure agreements are a perfect example of this. They're short, they're standard… they're boilerplate for goodness sake. What could possibly go wrong?!

My answer? Plenty. There is, dear reader, no such thing as a "standard" or "boilerplate" NDA. Each one is different, and as such, each carries with it certain risks and penalties for the careless or unfamiliar small business owner who signs without proper counsel.

First, because even with the best of intentions on both sides, it is difficult to craft a perfect NDA… one that is sufficiently protective without being onerous, and that is balanced and fair to each party. [If you come across one that satisfies those criteria, please let me know! I'm a collector!]

Second, many of these documents are deliberately written to include at least one "gotcha," which, if the need to enforce it against you ever arises, may very well have you by the proverbial shorthairs.

Consider, for example, the question of whether or not the recipient of confidential information (e.g. you) is permitted to disclose such confidential information if required to do so "by law or legal process."

You'd think, in other words, that if someday a constable strolls into your office and serves you with a subpoena for a deposition, to which you are required to bring certain documents in your possession, no signed NDA would prevent you from doing so.

Not necessarily true. In your haste to get the deal done years ago, you may very well have signed away your right to respond to the subpoena, leaving you now in the unenviable position of either facing court sanction for failure to obey, or litigation by the other party who fully intends to hold you to your written agreement… Gulp!

Here then is an example of the kind of "exception" language you want to see in an NDA which would allow you to respond to a subpoena, notwithstanding your obligation to protect the other party's confidential information:

Limited Exceptions. The obligations set forth in Section XXX hereof shall not apply to any Confidential Information which Recipient can demonstrate …

… is required to disclose in order to comply with applicable laws or regulations, or with a valid order of a court or other governmental body of the United States or any political subdivisions thereof, but only to the extent and for the purposes of such required disclosure and provided that (a) Recipient promptly notifies Discloser in order to provide Discloser the opportunity to seek a protective order, and (b) Recipient takes all reasonable actions, at the sole cost and expense of Discloser, to obtain confidential treatment for such information and, if possible, to minimize the extent of such disclosure.

Every once in a while I come across a state web site that includes some very useful information for small employers. The Massachusetts State Attorney General's Office is one of these.

The AG's office has the unenviable task of regularly policing the workplace to ensure compliance by all employers — large and small — with the myriad number of laws and regulations which affect employers and their employees.

Visit www.ago.state.ma.us, scroll down the list to Workplace Rights and you'll find a Guide to Workplace Rights and Responsibilities which just might come in handy someday. For instance, did you know that, if you now pay your employees weekly and want to change to biweekly, you must notify your employees 90 days before making the change? You'll find the answer to this and other related questions in a thumbnail synopsis of similar issues when you visit.

Widett and McCarthy helps small business owners grow their businesses with pragmatic legal advice, mentoring and a solid team of professional advisors.

We are here to help small business clients protect their businesses as they continue to grow. We serve as your "in-house counsel" — on-call when you need us, but not part of your company overhead. Our clients seek us out because they want to establish a relationship with legal counsel before problems arise. They want a lawyer they can count on as a sounding board, a business advisor and a strong right hand.