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Employers often use NDAs to keep the terms of settlement agreements confidential, which may also have the effect of preventing toxic practices within their workplace, including sexual harassment, from being exposed or known to other employees who may have similar experiences.

You can say you signed an NDA. Saying "I signed an NDA" is the same as saying "I am not allowed to say any more." Saying nothing implies the same, but can be illegal.

An NDA creates a confidential relationship between the parties, typically to protect any type of confidential and proprietary information or trade secrets. As such, an NDA protects non-public business information. Like all contracts, they cannot be enforced if the contracted activities are illegal.

Employers must be prepared to terminate any employee who refuses to sign the agreement. If an employer allows even one employee to refuse and remain employed, the agreements signed by the other employees will not be legally binding.

Every employee who has the ability to access confidential information or trade secrets should be required to sign a reasonable NDA, Sterman said.

A nondisclosure agreement is a written legal contract and is usually between an employer and an employee. The contract lays out binding terms and conditions that prohibit the employee from disclosing confidential and proprietary company information.

A non-disclosure agreement is a legally binding contract that establishes a confidential relationship. The party or parties signing the agreement agree that sensitive information they may obtain will not be made available to any others. An NDA may also be referred to as a confidentiality agreement.