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Tue, Apr 01 | 11:46 pm

Whistleblowers Accuse OpenAI of Illegal NDA Restrictions

by | Jul 15, 2024

Whistleblowers have accused OpenAI of imposing illegal restrictions on employee communications with government regulators, according to a letter obtained by The Washington Post. The letter, sent by lawyers representing anonymous whistleblowers to Securities and Exchange Commission (SEC) Chair Gary Gensler, calls for an investigation into OpenAI’s severance, non-disparagement, and non-disclosure agreements.

The letter alleges that OpenAI’s agreements have discouraged employees and investors from reporting securities violations to the SEC. It further claims that these agreements forced employees to waive their rights to whistleblower incentives and compensation and required them to notify the company before communicating with government regulators.

Evidence provided to the SEC suggests that OpenAI’s previous NDAs violated the law by mandating that employees sign overly restrictive contracts as a condition of employment, severance payments, and other financial benefits.

While OpenAI did not immediately respond to TechCrunch’s request for comment, a company spokesperson told The Washington Post that OpenAI’s whistleblower policy is designed to protect employees’ rights to make protected disclosures.

The letter was made public by Senator Chuck Grassley’s office, with copies sent to Congress. Grassley (R-Iowa) emphasized the importance of whistleblowers in monitoring and mitigating AI threats, stating that OpenAI’s policies appear to have a chilling effect on employees’ rights to report issues and receive due compensation.

“Monitoring and mitigating the threats posed by AI is part of Congress’s constitutional responsibility to protect our national security,” Grassley said in a statement. “Whistleblowers will be essential to that task. OpenAI’s policies and practices appear to cast a chilling effect on whistleblowers’ right to speak up and receive due compensation for their protected disclosures.”

The allegations underscore the ongoing scrutiny of tech companies’ practices as they navigate the complex regulatory landscape surrounding AI development and implementation.

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