Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

Whistleblowers accuse OpenAI of ‘illegally restrictive’ NDAs | TechCrunch

Jul 14, 2024 - news.bensbites.com
OpenAI has been accused by whistleblowers of imposing illegal restrictions on employees' communication with government regulators, according to a letter sent to the Securities and Exchange Commission (SEC) Chair Gary Gensler. The letter alleges that OpenAI's severance, non-disparagement, and non-disclosure agreements discouraged employees and investors from reporting securities violations to the SEC, forced employees to waive their rights to whistleblower incentives and compensation, and required employees to inform the company of any communication with government regulators.

The letter also claims that OpenAI violated the law by requiring employees to sign overly restrictive contracts to gain employment, severance payments, and other financial benefits. OpenAI has not yet responded to these allegations. Senator Chuck Grassley confirmed that the letter was obtained from his office and emphasized the importance of whistleblowers in monitoring and mitigating threats posed by AI. He also called for changes to OpenAI's non-disclosure agreements.

Key takeaways:

  • OpenAI has been accused by whistleblowers of placing illegal restrictions on how employees can communicate with government regulators, according to a letter sent to the SEC.
  • The letter alleges that OpenAI's agreements prohibited employees and investors from communicating with the SEC about securities violations, and required employees to waive their rights to whistleblower incentives and compensation.
  • OpenAI's employee exit agreement was criticized earlier this year for provisions that could strip former employees of their vested equity if they refused to sign the document or violated their NDAs.
  • Senator Chuck Grassley confirmed that the letter was obtained by The Post from his office, and stated that OpenAI's policies appear to cast a chilling effect on whistleblowers' rights.
View Full Article

Comments (0)

Be the first to comment!