Nlap Agreement

NLAP Agreement: What it is and How it Affects You

If you`re looking to start a business or expand an existing one, you may need to sign an NLAP agreement at some point. NLAP stands for “Non-Disclosure, Non-Competition, and Non-Solicitation Agreement.” This type of agreement is often used in the employment context, but it can also be used in other business relationships, such as when you`re working with vendors or partners.

What is an NLAP Agreement?

An NLAP agreement is a legal document that prohibits one party from disclosing confidential information, competing with the other party, or soliciting the other party`s customers or employees. These agreements are typically signed before the start of a business relationship and can last for a certain period of time, often a year or more.

The purpose of an NLAP agreement is to protect a business`s confidential information and trade secrets from being shared with competitors. This can include things like customer lists, pricing information, and proprietary technology. By signing an NLAP agreement, the recipient of the information agrees to keep it confidential and not use it for any purpose other than what was specified in the agreement.

How Does an NLAP Agreement Affect You?

If you`re asked to sign an NLAP agreement, it`s important to understand what you`re agreeing to. The non-disclosure clause means that you`re not allowed to share any confidential information you receive with anyone else. This includes not only your competitors but also your employees or subcontractors.

The non-competition clause means that you can`t start a business or work for a competitor in the same field as the other party. This can limit your ability to find work in your industry, especially if you work in a niche area.

The non-solicitation clause means that you can`t try to steal the other party`s customers or employees. This can make it difficult to start your own business or expand your existing one, as you may be limited in who you can reach out to for sales or collaboration.

It`s important to note that not all NLAP agreements are created equal. Some may be more restrictive than others, and some may be unenforceable in certain states. It`s always a good idea to have an attorney review any legal document before signing it.


An NLAP agreement can be an important tool for protecting your business`s confidential information and trade secrets. However, signing one can limit your ability to work in your industry or start your own business. If you`re asked to sign an NLAP agreement, make sure you understand what you`re agreeing to and have an attorney review it before signing.