NDA

A standard contract used in the industry, it binds the signatory to secrecy so that two companies can negotiate. It also refers to when an employee signs an NDA promising they will not disclose company information while they are employed or for a period of years after they leave.

Historical perspective: As of February 2023, companies can no longer silence laid off employees. Courts can invalidate an NDA they find to be unconscionable, unreasonable, or against public policy. For example, if the terms of the NDA are too broad, if they unfairly disadvantage one party, or if they go against the public interest, a court may refuse to enforce them.