(ca) Forced To Sign An Nda With Penalty As A Bartender

Hi guys, my employer is making me sign an NDA. I am a bartender and work at a bar. I guess I am just confused on if this penalty is even legal? And what confidential information means? My boss keeps saying I can't gossip about other employees or tell people about whatever the bosses are doing. I guess I just feel like 9k is kind of extreme and weird.

I asked him to clarify but he kept saying he can't give me any advice and cannot clarify any information and that the 9k is to protect me because "he could sue me for a lot more"? He said that all employees must sign it. I don't know something just seems like really off about the NDA, I included two sections here.

Location: California, USA

1. Definition of confidential information

   For purposes of this Agreement, “Confidential Information” shall include all information or material that has or could have commercial value or other utility in the business in which Disclosing Party is engaged. If Confidential Information is in written form, the Disclosing Party shall label or stamp the materials with the word “Confidential” or some similar warning. If Confidential Information is transmitted orally, the Disclosing Party shall promptly provide a writing indicating that such oral communication constituted Confidential Information.

2. obligations of the receiving party

Receiving Party shall hold and maintain the Confidential Information in strictest confidence for the sole and exclusive benefit of the Disclosing Party. Receiving Party shall carefully restrict access to Confidential Information to employees, contractors and third parties as is reasonably required and shall require those persons to sign nondisclosure restrictions at least as protective as those in this Agreement. Receiving Party shall not, without prior written approval of Disclosing Party, use for Receiving Party’s own benefit, publish, copy, or otherwise disclose to others, or permit the use by others for their benefit or to the detriment of Disclosing Party, any Confidential Information. Receiving Party shall return to Disclosing Party any and all records, notes, and other written, printed, or tangible materials in its possession pertaining to Confidential Information immediately if Disclosing Party requests it in writing. Violation will result in a $9,000.00 penalty, payable to owners within thirty days of violation.