While nondisclosure agreements are generally enforceable in California, their enforceability can be subject to certain limitations and considerations. An NDA typically prohibits employees from disclosing certain confidential information they learn or have access to during the course of their employment.California courts have long ruled that companies can use NDAs to protect certain financial, technical, and businessrelated information. In California, a nondisclosure agreement may be enforceable, provided it meets basic criteria. California laws prohibit certain terms in employment, separation, and settlement agreements between employers and employees, former. In California today, NDAs still carry validity and soundness in court so long as they are executed precisely, legally, and firmly. SB 331 expands California's limitation on non-disclosure and non-disparagement provisions from its predecessor law in four key ways. Non-disclosure agreements can be used in a variety of situations, from employment agreements to business partnerships and negotiations. An NDA establishes in writing the recipient's agreement to refrain from disclosing the specified material to any uninvited parties or organizations. Not confidential information.