Nondisclosure agreements can allow businesses to disclose confidential information without the risk of losing ownership of that information. NDAs are used any time that confidential information is disclosed to potential investors, creditors, employees, advisors, clients, suppliers, or stakeholders.NDAs, or non-disclosure agreements, are legally enforceable contracts that create a confidential relationship between a person who has sensitive information. As you requested, we reviewed federal agencies' implementation of clas- sified information nondisclosure agreements, including Standard Form. New Jersey passed a law that prohibits the use of non-disclosure agreements in the settlement of various types of employment claims. An NDA is a legal document that protects your business information and trade secrets from vendors, employees, and third parties. These agreements also prohibit the employee from revealing proprietary information or secrets to any other parties during or after employment. 2.4. Effective July 1, 2021, employees will no longer receive longevity pay.