The relationship of an employer and an employee exists when, pursuant to an agreement of the parties, one person, the employee, agrees to work under the direction and control of another, the employer, for compensation. The agreement of the parties is a contract, and it is therefore subject to all the principles applicable to contracts. The contract may be implied. Most employment contracts are implied oral agreements. In this type of arrangement, the employer is accepting the services of the employee that a reasonable person would recognize as being such that compensation would be given to the employee.
The contract will often be an express written contract. In other words, the duties of the employee will be specifically set forth in writing in the contract. The attached form is a sample agreement between a nonprofit corporation and an executive director.
South Dakota Employment Agreement with Executive Director of a Nonprofit Corporation: Understanding the Confidentiality Clause Introduction: In South Dakota, nonprofit organizations seeking to hire executives, such as an Executive Director, enter into an Employment Agreement to establish the terms and conditions of employment. This agreement outlines the responsibilities, compensation, benefits, and other crucial aspects of the employment relationship. Additionally, it includes a Confidentiality Clause to protect sensitive information shared between the nonprofit corporation and the Executive Director. Here, we will delve into the details of the South Dakota Employment Agreement with a specific focus on the Confidentiality Clause. Types of South Dakota Employment Agreement with Executive Director of a Nonprofit Corporation including a Confidentiality Clause: 1. General South Dakota Employment Agreement with Executive Director of a Nonprofit Corporation: This type of agreement sets out the basic terms of employment, clearly specifying the roles and responsibilities of the Executive Director, working hours, compensation structure, probation period (if applicable), termination clauses, and severance packages. It also includes a Confidentiality Clause to ensure the protection and non-disclosure of sensitive and proprietary information owned by the nonprofit corporation. 2. South Dakota Employment Agreement with Executive Director of a Nonprofit Corporation involving Intellectual Property: Nonprofit organizations engaged in creative endeavors or innovation may opt for this agreement type. It includes clauses related to intellectual property rights, ownership, and potential profit-sharing arrangements resulting from the Executive Director's work. Alongside the standard terms found in the general agreement, the Confidentiality Clause in this agreement underscores the importance of protecting trade secrets, inventions, and other valuable intellectual assets. 3. South Dakota Employment Agreement with Executive Director of a Nonprofit Corporation involving Fundraising Strategies: Nonprofit corporations heavily reliant on fundraising activities may choose this agreement to emphasize comprehensive fundraising strategies and financial targets. This agreement type often outlines the Executive Director's responsibilities regarding donor cultivation, grant applications, and capital campaigns. The accompanying Confidentiality Clause focuses on safeguarding donor lists, financial data, and any other private information pertaining to fundraising activities. Key Elements of the South Dakota Employment Agreement with Executive Director of a Nonprofit Corporation (Including Confidentiality Clause): 1. Confidentiality: The Confidentiality Clause underscores the Executive Director's obligation to maintain strict confidentiality regarding proprietary, financial, donor, and other sensitive information disclosed during employment. It prohibits unauthorized disclosure or use of such information during and after the employment relationship. 2. Non-Disclosure: This clause mandates that the Executive Director shall not disclose any trade secrets, proprietary knowledge, or confidential information to third parties without the written consent of the nonprofit corporation, unless required by law. 3. Non-Compete: Some agreements may contain a Non-Compete Clause, limiting the Executive Director's ability to engage in similar nonprofit work or establish competing ventures for a specified timeframe after leaving the nonprofit organization. 4. Return of Property: This clause outlines the Executive Director's responsibility to return all property, documents, records, and confidential information belonging to the nonprofit corporation upon termination of employment. 5. Consequences for Breach: The Employment Agreement will include provisions detailing the consequences for breaching the Confidentiality Clause, such as injunctions, monetary damages, or termination of employment. Conclusion: The South Dakota Employment Agreement with an Executive Director of a Nonprofit Corporation, incorporating a comprehensive Confidentiality Clause, provides necessary legal protection to nonprofit organizations. By understanding the different types of agreements available, nonprofit corporations can ensure the safeguarding of their proprietary information, intellectual property, donor relationships, and other valuable assets.
