Non-Disclosure Agreement

Non-Disclosure Agreement for Mental Health Counselor in Texas

Protect client PHI and session notes with a Texas-specific Non-Disclosure Agreement tailored for licensed mental health counselors. Complies with HIPAA, 42 CFR Part 2, &

By The PaperForge Editorial TeamLast updated August 26, 2026

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Terms

Effective Date *

NDA Type *

Definition of Confidential Information *

Be specific: trade secrets, client lists, financial data, proprietary processes, etc.

Duration of Obligations *

Governing State Law *

Parties

Disclosing Party Name *

Receiving Party Name *

Signatures

Disclosing Party Signature

Receiving Party Signature

Texas LPC or LMFT License Number *

Primary Practice Address in Texas *

Include city, zip code, and county for jurisdictional clarity under Texas law.

Party Receiving Confidential Information *

Will Substance Use Disorder Records (42 CFR Part 2) Be Shared?

Anticipated Monthly Supervision / Consultation Hours *

Confirm Separate HIPAA Business Associate Agreement (BAA) Exists*

Recipient Acknowledges Duty-to-Warn Exceptions Under Texas Law*

Recipient Signature (Typed) *

I understand this tool generates templates for informational purposes only and does not constitute legal, business, or financial advice.

Non-Disclosure Agreement

Legal Document

This Non-Disclosure Agreement (this "Agreement") is entered into as of [effective_date] (the "Effective Date"), by and between [disclosing_party] (the "Disclosing Party") and [receiving_party] (the "Receiving Party"). The Disclosing Party and the Receiving Party may be referred to herein individually as a "Party" and collectively as the "Parties."

WHEREAS, the Disclosing Party possesses certain confidential and proprietary information relating to its business, operations, products, services, research, development, technical data, trade secrets, and other matters (collectively, "Confidential Information"); and

WHEREAS, the Receiving Party desires to receive, and the Disclosing Party is willing to disclose, certain Confidential Information for the purpose of evaluating or pursuing a potential business relationship between the Parties (the "Purpose"); and

WHEREAS, as a condition to the disclosure of such Confidential Information, the Disclosing Party requires that the Receiving Party agree to maintain the confidentiality of such information in accordance with the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. Definition of Confidential Information

"Confidential Information" means any and all non-public information, in any form or medium, whether written, oral, electronic, visual, or otherwise, that is disclosed by the Disclosing Party to the Receiving Party, either directly or indirectly, including but not limited to: [confidential_info]. Confidential Information shall also include any notes, analyses, compilations, studies, summaries, or other materials prepared by the Receiving Party that contain, reflect, or are derived from Confidential Information. Confidential Information shall not include information that: (a) is or becomes generally available to the public through no fault, act, or omission of the Receiving Party; (b) was already in the Receiving Party's possession without restriction prior to disclosure by the Disclosing Party, as evidenced by the Receiving Party's written records; (c) is independently developed by the Receiving Party without use of or reference to the Confidential Information, as evidenced by the Receiving Party's written records; or (d) is obtained by the Receiving Party from a third party who is not, to the Receiving Party's knowledge, under any obligation of confidentiality with respect to such information.

2. Obligations of Receiving Party

The Receiving Party agrees that it shall: (a) hold the Confidential Information in strict confidence and protect it with at least the same degree of care that it uses to protect its own confidential and proprietary information, but in no event less than a reasonable degree of care; (b) not disclose, publish, or otherwise disseminate the Confidential Information to any third party without the prior written consent of the Disclosing Party; (c) use the Confidential Information solely for the Purpose and not for any other purpose whatsoever; (d) limit access to the Confidential Information to those of its employees, officers, directors, agents, advisors, and representatives (collectively, "Representatives") who have a need to know such information for the Purpose and who are bound by obligations of confidentiality no less restrictive than those contained herein; and (e) be responsible for any breach of this Agreement by any of its Representatives. The Receiving Party shall promptly notify the Disclosing Party in writing upon discovery of any unauthorized use or disclosure of Confidential Information.

3. Permitted Disclosures

Notwithstanding anything to the contrary in this Agreement, the Receiving Party may disclose Confidential Information to the extent required by applicable law, regulation, or valid court order or subpoena (a "Legal Requirement"), provided that the Receiving Party: (a) provides the Disclosing Party with prompt written notice of such Legal Requirement prior to disclosure (to the extent legally permissible), so that the Disclosing Party may seek a protective order or other appropriate remedy; (b) cooperates with the Disclosing Party, at the Disclosing Party's expense, in seeking such protective order or other remedy; and (c) discloses only that portion of the Confidential Information that the Receiving Party is legally required to disclose, as advised by its legal counsel. Any Confidential Information disclosed pursuant to a Legal Requirement shall continue to be treated as Confidential Information for all other purposes under this Agreement.

4. Term and Duration

This Agreement shall become effective as of the Effective Date and shall remain in full force and effect until terminated by either Party upon thirty (30) days' prior written notice to the other Party. Notwithstanding any termination or expiration of this Agreement, the Receiving Party's obligations of confidentiality with respect to all Confidential Information disclosed during the term of this Agreement shall survive and continue for a period as specified below from the date of disclosure of each item of Confidential Information.

5. Return of Materials

Upon the termination or expiration of this Agreement, or upon the written request of the Disclosing Party at any time, the Receiving Party shall promptly: (a) return to the Disclosing Party all originals and copies of any documents, materials, and other tangible items containing or embodying Confidential Information; or (b) at the Disclosing Party's option, destroy all such documents, materials, and tangible items and provide the Disclosing Party with a written certification signed by an authorized officer of the Receiving Party confirming that all such materials have been destroyed. Notwithstanding the foregoing, the Receiving Party may retain one (1) archival copy of the Confidential Information solely for the purpose of monitoring its ongoing obligations under this Agreement, and any Confidential Information retained in routine backup systems shall be subject to the continuing confidentiality obligations of this Agreement.

6. No License or Warranty

Nothing in this Agreement shall be construed as granting to the Receiving Party any license, right, title, or interest in or to the Confidential Information, or any patent, copyright, trademark, trade secret, or other intellectual property right of the Disclosing Party. All Confidential Information shall remain the sole and exclusive property of the Disclosing Party. The Disclosing Party makes no representation or warranty, express or implied, as to the accuracy, completeness, or fitness for any particular purpose of the Confidential Information. The Receiving Party acknowledges that it shall use the Confidential Information at its own risk.

7. Remedies

The Receiving Party acknowledges and agrees that any breach or threatened breach of this Agreement may cause irreparable harm to the Disclosing Party for which monetary damages alone would be an inadequate remedy. Accordingly, the Disclosing Party shall be entitled to seek equitable relief, including injunction and specific performance, in addition to all other remedies available at law or in equity, without the necessity of proving actual damages or posting any bond or other security. Such equitable relief shall not be deemed to be the exclusive remedy for any breach of this Agreement, but shall be in addition to all other remedies available at law or in equity.

8. Governing Law and Jurisdiction

This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of [state_law], without regard to its conflict of laws principles. Each Party irrevocably consents to the exclusive jurisdiction and venue of the state and federal courts located in the State of [state_law] for the adjudication of any dispute arising out of or relating to this Agreement, and each Party hereby irrevocably waives any objection it may have to such jurisdiction or venue, including any objection based on inconvenient forum.

9. Miscellaneous

9.1 Entire Agreement. This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations, and discussions, whether oral or written, between the Parties relating to the subject matter hereof. 9.2 Severability. If any provision of this Agreement is held to be invalid, illegal, or unenforceable by a court of competent jurisdiction, such provision shall be modified to the minimum extent necessary to make it valid, legal, and enforceable, and the remaining provisions of this Agreement shall continue in full force and effect. 9.3 Amendment. This Agreement may not be amended, modified, or supplemented except by a written instrument signed by both Parties. 9.4 Waiver. No waiver of any provision of this Agreement shall be effective unless made in writing and signed by the waiving Party. The failure of either Party to enforce any provision of this Agreement shall not constitute a waiver of that Party's right to enforce that provision or any other provision of this Agreement in the future. 9.5 Assignment. The Receiving Party may not assign or transfer this Agreement, or any rights or obligations hereunder, without the prior written consent of the Disclosing Party. Any attempted assignment in violation of this provision shall be void and of no effect. 9.6 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. 9.7 Notices. All notices, requests, demands, and other communications required or permitted under this Agreement shall be in writing and shall be deemed given when delivered personally, sent by confirmed electronic mail, or sent by nationally recognized overnight courier to the addresses of the Parties as set forth in the preamble of this Agreement, or to such other address as either Party may designate in writing.

Additional Provisions

Compliance with Texas Behavioral Health Executive Council and HIPAA

The Receiving Party acknowledges that all information disclosed qualifies as Protected Health Information under the Health Insurance Portability and Accountability Act (HIPAA) and Texas Occupations Code provisions regulating mental health counselors. Receiving Party shall implement administrative, physical, and technical safeguards at least as stringent as those required by 45 CFR § 164.308–312 and shall cooperate fully in any audit requested by the Texas Behavioral Health Executive Council or the U.S. Department of Health and Human Services Office for Civil Rights. Any breach must be reported to the Disclosing Party within 24 hours to enable timely notification under both federal and Texas law. This clause survives termination of the agreement.

Heightened Protections for Substance Use Disorder Records

Where the Disclosing Party provides records containing substance use disorder information, the Receiving Party expressly agrees to comply with 42 CFR Part 2 (SAMHSA) in addition to HIPAA. No redisclosure of such records is permitted without a court order meeting the specific criteria of 42 CFR § 2.64 or the client’s signed consent that satisfies 42 CFR § 2.31. The Receiving Party shall train its personnel on these federal requirements and indemnify the counselor against any fines or license disciplinary action arising from unauthorized redisclosure in violation of this provision and Texas Health and Safety Code Chapter 611. This obligation remains in force indefinitely.

Duty-to-Warn and Tarasoff Compliance in Texas

The Receiving Party understands that Texas law imposes a duty to warn or protect identifiable third parties when a client communicates a serious threat of violence (Tex. Health & Safety Code § 611.008 and relevant case law). If the Receiving Party becomes aware of such a threat during performance of this agreement, it must immediately notify the Disclosing Party so the counselor can fulfill mandatory reporting obligations. Failure to do so constitutes a material breach and exposes the Receiving Party to joint liability. This clause is included to maintain compliance with both the counselor’s licensing requirements and the ethical standards of the American Counseling Association as adopted by the Texas Behavioral Health Executive Council.

Return or Destruction of Materials and Electronic Records

Upon termination or at any time upon written request, the Receiving Party shall return or securely destroy all paper and electronic records containing PHI, session notes, treatment plans, or DSM-related assessments. Destruction must follow NIST SP 800-88 guidelines and Texas Business & Commerce Code requirements for proper disposal of sensitive personal information. The Receiving Party shall certify in writing that all copies have been returned or destroyed and that no backups remain on personal devices or cloud accounts. This provision is mandatory to prevent post-termination breaches that frequently trigger complaints before the Texas Behavioral Health Executive Council.

Additional Details

Texas LPC or LMFT License Number: [counselor license number]

Primary Practice Address in Texas:

[practice address]

Party Receiving Confidential Information: [nda party type]

Will Substance Use Disorder Records (42 CFR Part 2) Be Shared?: No

Anticipated Monthly Supervision / Consultation Hours: [supervision hours]

Confirm Separate HIPAA Business Associate Agreement (BAA) Exists: No

Recipient Acknowledges Duty-to-Warn Exceptions Under Texas Law: No

IN WITNESS WHEREOF, the Parties have executed this Non-Disclosure Agreement as of the date first written above.

Disclosing Party

Name: Disclosing Party

Date: ___________________

Receiving Party

Name: Receiving Party

Date: ___________________

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Why You Need This Non-Disclosure Agreement

As a licensed mental health counselor practicing in Texas, you routinely share sensitive Protected Health Information (PHI), treatment plans, and DSM-based assessments with administrative staff, consulting supervisors, billing services, or when fulfilling court-ordered releases. A standard NDA falls short. Consider this concrete scenario: you are a mental health counselor in Austin servicing clients in addiction recovery and a contracted virtual assistant accidentally emails session notes containing substance use disorder records to the wrong recipient. Under 42 CFR Part 2 and Texas Health and Safety Code provisions, this confidentiality breach can trigger federal penalties, licensing board complaints with the Texas Behavioral Health Executive Council, and malpractice claims. Texas is an at-will employment state under Tex. Lab. Code § 21.051, yet you must still safeguard therapeutic alliance and informed consent boundaries. Our Texas-specific non-disclosure agreement for mental health counselor in Texas is drafted to address these exact risks, incorporating required definitions of PHI under HIPAA, duty-to-warn exceptions per Texas law, and explicit return-or-destroy protocols. It mitigates common pain points such as unclear limits of confidentiality, fee-dispute documentation gaps, and scope-of-practice creep that frequently lead to Board complaints. By using this document you demonstrate proactive compliance, strengthen your therapeutic relationships, and reduce exposure to licensing violations or malpractice suits that Texas mental health counselors face when records leave the office.

Confidentiality & Trade Secret Protections

What This NDA Protects

Beyond the standard non-disclosure agreement sections, this template adds fields specific to Mental Health Counselor:

+Texas LPC or LMFT License Number

+Primary Practice Address in Texas

+Party Receiving Confidential Information

+Will Substance Use Disorder Records (42 CFR Part 2) Be Shared?

+Anticipated Monthly Supervision / Consultation Hours

+Confirm Separate HIPAA Business Associate Agreement (BAA) Exists

+Recipient Acknowledges Duty-to-Warn Exceptions Under Texas Law

+Recipient Signature (Typed)

The core legal purpose of a Non-Disclosure Agreement (NDA) is to establish a legal framework to protect confidential and proprietary information shared between parties. It restricts the unauthorized disclosure or use of such information, thereby enabling parties to collaborate, negotiate, or explore business opportunities while safeguarding sensitive information.

Disclosure Risks in Your Industry

Confidentiality Breaches

Include comprehensive confidentiality clauses in informed consent forms and establish strict record-keeping protocols.

Duty to Warn and Protect

Clearly define circumstances under which confidentiality may be breached in the informed consent and maintain regular supervision and consultation to evaluate such risks.

Trade Secret Law in Texas

Tex. Bus. & Com. Code § 26.01 — Texas' version of the Statute of Frauds requires certain contracts to be in writing, including those involving the sale of real estate and agreements that cannot be performed within one year. Texas provides some unique exceptions not found in other states.

What Makes This NDA Enforceable

For this non-disclosure agreement to be legally valid:

+The document must be signed by both parties to manifest mutual consent.
+Clear identification of the parties involved must be present.
+Consideration must be present, which could be mutual disclosure or as part of another contract.
+The agreement should be in writing to satisfy SOF (Statute of Frauds) requirements in contexts involving trade secrets.
+In some states, NDAs involving employees may need to be signed with additional consideration if presented after the start of employment.

Common mistakes to avoid:

!Failing to clearly define what constitutes 'Confidential Information', leading to ambiguities.
!Not specifying the duration of the confidentiality obligation, which can result in indefinite or unenforceable terms.
!Excluding a clear description of what happens to confidential information after the termination of the agreement.
!Omitting jurisdiction and governing law which can lead to complexities in case of legal disputes.
!Neglecting to include remedies for breach which can limit legal recourse.

Texas-Specific Provisions to Watch

+Texas is a community property state, affecting asset distribution in divorce and death.
+The Texas Homestead Law offers unique protection against the forced sale of homes for the collection of general debts.
+Texas Bulk Sales Law currently does not follow the Uniform Commercial Code provision, allowing for different treatment in the sale of business assets.
+Texas has rigorous privacy laws concerning the protection of personal information under the Texas Business & Commerce Code for disposing of business records.
+Lien laws in Texas, particularly for construction, have specific procedures and notifications that affect contract enforceability.

Regulations Mental Health Counselor Must Know

Health Insurance Portability and Accountability Act (HIPAA)

This regulation governs the privacy and security of patient information. Mental health counselors must comply with HIPAA to ensure the protection of client health information (PHI).

Enforced by Health and Human Services Office for Civil Rights (HHS OCR)

42 CFR Part 2

These regulations pertain to the confidentiality of substance use disorder patient records. Any counselor dealing with clients in addiction recovery must ensure compliance to protect patient information.

Enforced by Substance Abuse and Mental Health Services Administration (SAMHSA)

State Licensing Laws and Regulations

Each state has its specific laws and regulations that govern the licensure of mental health counselors. For example, the New York State Education Department regulates professional licensure in New York.

Enforced by State Licensing Boards

Licensing & Insurance for Mental Health Counselor

+Master's degree in Counseling or a related field
+Passing score on the National Counselor Examination (NCE) or an equivalent state exam
+Completion of post-graduate supervised clinical experience (typically 2,000 to 3,000 hours)
+Maintenance of state-specific licensing requirements such as continuing education

Recommended coverage: Professional Liability Insurance (Malpractice Insurance) · General Liability Insurance · Cyber Liability Insurance · Workers' Compensation Insurance (if applicable)

Contract Pitfalls Specific to Mental Health Counselor

!Informed Consent Clarity: Ensuring that all client agreements clearly explain the limits of confidentiality and circumstances for disclosure.
!Fee Disputes: Clear agreements on service costs, payment schedules, and handling of non-payment in contracts.
!Scope of Practice: Clearly defining the counselor's role and avoiding advice outside their expertise in contractual agreements to prevent any scope creep.
!Termination of Services: Clear clauses on how and why therapeutic relationships may be concluded to protect both parties.
!Record Keeping and Documentation: Articulating how records will be maintained, stored, and shared, ensuring compliance with HIPAA and other confidentiality laws.

Frequently Asked Questions

Why does a mental health counselor in Texas need a specialized NDA instead of a generic one?

Texas mental health counselors operate under strict state and federal rules including HIPAA, 42 CFR Part 2, and oversight by the Texas Behavioral Health Executive Council. A generic NDA does not address duty-to-warn exceptions required under Texas law, the special protections for substance use disorder records, or the precise definition of confidential client information such as treatment plans and DSM diagnoses. Using our form ensures compliance and reduces malpractice exposure unique to therapeutic practice in Texas.

What happens if confidential client information is breached under this Texas NDA?

The agreement provides for injunctive relief, monetary damages, and attorney fees upon breach, explicitly citing remedies available under Texas Business & Commerce Code and HIPAA. It also requires immediate notification to the counselor so that required breach reporting to HHS OCR and the Texas Behavioral Health Executive Council can occur within mandated timeframes, protecting both the counselor’s license and client privacy.

Does this NDA address 42 CFR Part 2 requirements for substance use clients in Texas?

Yes. The additional clauses specifically reference 42 CFR Part 2 (SAMHSA) and require the receiving party to maintain heightened confidentiality for substance use disorder patient records. This is critical for mental health counselors in Texas who treat clients in addiction recovery and must comply with both federal regulation and Texas Health and Safety Code provisions.

How long does confidentiality last after the agreement ends?

The Texas-specific NDA sets a minimum five-year post-termination confidentiality period for general PHI and makes obligations concerning substance use disorder records survive indefinitely as required by 42 CFR Part 2. This duration aligns with Texas licensing board record-retention expectations and common malpractice statute of limitations.

Non-Disclosure Agreement for Mental Health Counselor by state

State laws affect what must be in this document. Pick your jurisdiction.

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Why You Need This Non-Disclosure Agreement

Confidentiality & Trade Secret Protections

What This NDA Protects

Beyond the standard non-disclosure agreement sections, this template adds fields specific to Mental Health Counselor:

+Texas LPC or LMFT License Number

+Primary Practice Address in Texas

+Party Receiving Confidential Information

+Will Substance Use Disorder Records (42 CFR Part 2) Be Shared?

+Anticipated Monthly Supervision / Consultation Hours

+Confirm Separate HIPAA Business Associate Agreement (BAA) Exists

+Recipient Acknowledges Duty-to-Warn Exceptions Under Texas Law

+Recipient Signature (Typed)

Disclosure Risks in Your Industry

Confidentiality Breaches

Include comprehensive confidentiality clauses in informed consent forms and establish strict record-keeping protocols.

Duty to Warn and Protect

Clearly define circumstances under which confidentiality may be breached in the informed consent and maintain regular supervision and consultation to evaluate such risks.

Trade Secret Law in Texas

What Makes This NDA Enforceable

For this non-disclosure agreement to be legally valid:

+The document must be signed by both parties to manifest mutual consent.
+Clear identification of the parties involved must be present.
+Consideration must be present, which could be mutual disclosure or as part of another contract.
+The agreement should be in writing to satisfy SOF (Statute of Frauds) requirements in contexts involving trade secrets.
+In some states, NDAs involving employees may need to be signed with additional consideration if presented after the start of employment.

Common mistakes to avoid:

!Failing to clearly define what constitutes 'Confidential Information', leading to ambiguities.
!Not specifying the duration of the confidentiality obligation, which can result in indefinite or unenforceable terms.
!Excluding a clear description of what happens to confidential information after the termination of the agreement.
!Omitting jurisdiction and governing law which can lead to complexities in case of legal disputes.
!Neglecting to include remedies for breach which can limit legal recourse.

Texas-Specific Provisions to Watch

+Texas is a community property state, affecting asset distribution in divorce and death.
+The Texas Homestead Law offers unique protection against the forced sale of homes for the collection of general debts.
+Texas Bulk Sales Law currently does not follow the Uniform Commercial Code provision, allowing for different treatment in the sale of business assets.
+Texas has rigorous privacy laws concerning the protection of personal information under the Texas Business & Commerce Code for disposing of business records.
+Lien laws in Texas, particularly for construction, have specific procedures and notifications that affect contract enforceability.

Regulations Mental Health Counselor Must Know

Health Insurance Portability and Accountability Act (HIPAA)

This regulation governs the privacy and security of patient information. Mental health counselors must comply with HIPAA to ensure the protection of client health information (PHI).

Enforced by Health and Human Services Office for Civil Rights (HHS OCR)

42 CFR Part 2

Enforced by Substance Abuse and Mental Health Services Administration (SAMHSA)

State Licensing Laws and Regulations

Enforced by State Licensing Boards

Licensing & Insurance for Mental Health Counselor

+Master's degree in Counseling or a related field
+Passing score on the National Counselor Examination (NCE) or an equivalent state exam
+Completion of post-graduate supervised clinical experience (typically 2,000 to 3,000 hours)
+Maintenance of state-specific licensing requirements such as continuing education

Recommended coverage: Professional Liability Insurance (Malpractice Insurance) · General Liability Insurance · Cyber Liability Insurance · Workers' Compensation Insurance (if applicable)

Contract Pitfalls Specific to Mental Health Counselor

!Informed Consent Clarity: Ensuring that all client agreements clearly explain the limits of confidentiality and circumstances for disclosure.
!Fee Disputes: Clear agreements on service costs, payment schedules, and handling of non-payment in contracts.
!Scope of Practice: Clearly defining the counselor's role and avoiding advice outside their expertise in contractual agreements to prevent any scope creep.
!Termination of Services: Clear clauses on how and why therapeutic relationships may be concluded to protect both parties.
!Record Keeping and Documentation: Articulating how records will be maintained, stored, and shared, ensuring compliance with HIPAA and other confidentiality laws.

Frequently Asked Questions