In most cases, employers and employees are free to enter into employment contracts.
Companies in California provide unique services and products for their customers. However, many different companies provide similar products and services. Therefore, it is important for these companies to develop an edge over the competition by providing a superior product or one that has improved features. In order to do this the company will want to keep the differences between their product and others on the market secret. To ensure that this happens they will often times have their employees sign non-disclosure agreements.