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On behalf of Kadish & Associates Law Group posted in Business Litigation on Saturday, August 11, 2018.

Arizona employees and contract workers who are bound by a confidentiality agreement will face severe consequences if it’s proved that they broke that agreement. Here are some of the consequences that those accused of a breach of confidentiality could experience:

• Termination: The breach of a confidentiality agreement is typically grounds for immediate termination and loss of employment.
• Financial damages: If the employer can prove that financial damages occurred as a result of the confidentiality breach, these damages may be recoverable via civil court proceedings.
• Legal costs: When a worker faces a lawsuit for breach of confidentiality, not only can the employer seek financial compensation for the damages caused by the breach, but the employer can also hold the employee responsible for the costs of the legal proceedings to prove that the breach of contract occurred.
• Loss of reputation: An employee or contractor who commits a breach of confidentiality could suffer irreparable career damage. Many in this situation have a difficult time securing further employment in their industries.
• Criminal charges: In extreme scenarios, when a breach of contract involves the theft of intellectual property, it could result in criminal charges — and even imprisonment in the event of a conviction.

Many employees accused of a breach of confidentiality are not guilty of the alleged wrongdoing. Furthermore, it’s common for accused employees to have a different opinion about whether he or she actually broke the agreement. Whether you’re an employer accusing an employee of breach of confidentiality or an accused employee trying to defend yourself, a deeper understanding of Arizona business contract law will help you navigate this important legal issue.