What does a nondisclosure agreement prevent an employee from doing?

A nondisclosure agreement (NDA) is a legally binding contract that aims to protect confidential information. When an employee signs an NDA, they agree not to disclose sensitive information pertaining to the company's projects, strategies, and trade secrets to unauthorized individuals or entities. This restriction is crucial for maintaining a competitive advantage and ensuring that proprietary information does not leak into the public domain or get into the hands of competitors.

While sharing personal opinions about the company, discussing work with friends, or working with competitors may also pose risks, these actions are not the primary focus of an NDA. Instead, the NDA specifically targets the protection of confidential and sensitive information. By signing this type of agreement, employees are legally obligated to keep this information private, thereby safeguarding the company's interests and intellectual property.