In an employment practices context, a legal agreement between an employer and
an employee that prohibits an employee from publicizing confidential and
valuable information pertaining to the employer. In many cases in which such
agreements are utilized, initial or continued employment is contingent on an
employee's signing of the nondisclosure agreement. Effective periods of
nondisclosure agreements commonly extend not only for the length of employment
but also for a period of time after employment is terminated or otherwise ends.
In some cases, nondisclosure agreements can be worded broadly enough so as to
prevent disclosure of any kind of personnel decisions or personal conduct
witnessed by an employee. Broad nondisclosure agreements of this sort, which
could be interpreted as an enabling force for certain harassment or other
inappropriate conduct-related exposures, may face additional scrutiny in the
courts.