OpenAI accused of imposing illegal restrictions on employees
What's the story
OpenAI is facing allegations of imposing illegal restrictions on its employees' communication with government regulators.
The accusations were made in a letter to Securities and Exchange Commission (SEC) Chair Gary Gensler by lawyers representing anonymous whistleblowers.
The letter, obtained by The Washington Post, forms part of a formal complaint urging the SEC to investigate OpenAI's severance, non-disparagement, and non-disclosure agreements.
Agreement controversy
Agreements violate legal rights, claims letter
The whistleblowers' letter alleges that OpenAI's agreements "prohibited and discouraged both employees and investors from communicating with the SEC concerning securities violations."
The letter also claims these agreements "forced employees to waive their rights to whistleblower incentives and compensation," requiring them to inform the company about any communication with government regulators.
Evidence has been provided to the SEC showing that "OpenAI's prior NDAs violated the law by requiring its employees to sign illegally restrictive contracts."
Congressional response
Senator Grassley expresses concern over OpenAI's policies
The letter obtained by The Washington Post also highlights Senator Chuck Grassley's views and concerns.
Grassley states "monitoring and mitigating the threats posed by AI is a part of Congress's constitutional responsibility to protect our national security, and whistleblowers will be essential to that task."
He also expressed concern over OpenAI's policies and practices, stating "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."
Exit agreement
OpenAI's employee exit agreement draws criticism
Earlier this year, OpenAI faced backlash over its employee exit agreement.
Reports suggested that the agreement could potentially strip former employees of their vested equity if they refused to sign or violated their NDAs.
In response to the criticism, CEO Sam Altman apologized stating that he was "very sorry."
He also claimed that the company "never clawed anything back" and was already in the process of fixing the standard exit paperwork.
Call for enforcement
Whistleblowers urge SEC to take action against OpenAI
The whistleblowers' letter to the SEC follows an official complaint filed in June, urging the SEC to "take swift and aggressive steps" to enforce rules allegedly violated by OpenAI.
The whistleblowers argue that enforcement is crucial "even if OpenAI is making reforms in light of the public disclosures of their illegal contracts."
They believe this action is necessary to send a clear message that violations of employees' or investors' rights will not be tolerated in the AI and tech industry.