OpenAI Allegedly Uses Restrictive NDAs, Faces Scrutiny and Whistleblower Complaint
TapTechNews July 14th news, OpenAI is once again under scrutiny for allegedly using restrictive non-disclosure agreements (NDAs) to limit employees' voices. According to The Washington Post, a whistleblower sent a letter to the US Securities and Exchange Commission, claiming that OpenAI forces employees to sign 'illegal restrictive' agreements that prevent them from disclosing potential harms of the company's technology. The whistleblower letter alleges that OpenAI has violated the regulations of the US Securities and Exchange Commission, which aims to protect employees' rights to report their concerns to federal authorities and prevent retaliatory actions. Previously, the whistleblower had officially submitted a complaint to the US Securities and Exchange Commission in June.
The whistleblower letter demands that the US Securities and Exchange Commission 'take prompt and decisive measures' to enforce what they believe OpenAI has violated. The alleged violations include requiring employees to sign an agreement, 'which does not exempt disclosing securities violations to the US Securities and Exchange Commission', and requiring employees to obtain the company's consent before disclosing confidential information to the authorities. TapTechNews notes that the whistleblower letter also points out that OpenAI's agreement requires employees to 'waive the compensation funds established by Congress to encourage whistleblowing and provide financial assistance to whistleblowers'.
OpenAI spokesperson Hannah Wong said in a statement, 'Our whistleblower policy protects the rights of employees to make legal disclosures', and added that the company has made 'ignificant modifications' to its separation documents to remove the non-disparagement clause in the non-disclosure agreement. OpenAI had previously said it was amending these agreements after being criticized for threatening to claw back vested benefits from departing employees to force them to sign separation agreements.
According to reports, the US Securities and Exchange Commission has responded to the complaint but has not yet announced any details about the actions it will or will not take. But the whistleblower said that even if OpenAI reforms after its illegal contracts are publicly disclosed, enforcement is still of the utmost importance. 'This is not to attack OpenAI or to hinder the development of artificial intelligence technology, but to send a message to other players in the field of artificial intelligence and the entire technology industry that actions that violate the rights of employees or investors to report improper behavior will not be tolerated.'