Whistleblowers have reignited controversy surrounding OpenAI’s non-disclosure agreements, claiming in a letter to the Securities and Exchange Commission (SEC) that employees are being forced to sign contracts that restrict their ability to discuss the potential risks associated with the company’s technology, deemed “illegally restrictive” by those speaking out. A former employee’s letter, published online, alleges that OpenAI breached Securities and Exchange Commission regulations aimed at protecting workers’ freedom to report grievances to the government and prevent reprisal. Following a formal complaint lodged with the Securities and Exchange Commission (SEC) in June.
The whistleblowers implore the SEC to swiftly and resolutely enact measures to rectify the alleged violations of OpenAI’s foundations as asserted by them. The alleged violations are said to have involved requiring employees to sign agreements that failed to exclude disclosures of securities violations to the SEC, as well as insisting they obtain corporate consent before revealing confidential information to regulatory authorities. The letter further asserts that OpenAI’s contractual provisions demanded contractors surrender any compensation owed to them under Congressional legislation aimed at encouraging disclosures and providing financial relief to whistleblowers.
OpenAI’s spokesperson, Hannah Wong, announced that the company’s whistleblower protection policy safeguards employees’ right to report concerns anonymously, stating, “Our coverage protects workers’ rights to make protected disclosures.” Wong also noted that OpenAI has made crucial updates to its offboarding procedures to eliminate nondisparagement clauses. Prior to being criticized for allegedly imposing ultimatums and demanding non-disclosure agreements (NDAs) from departing employees, OpenAI announced plans to revise its standard employment agreements this spring.
Despite mounting criticism, the SEC has yet to provide specific details regarding its intended course of action. Regardless of the whistleblowers’ claims, it is essential to emphasize the significance of enforcement “even as OpenAI undertakes reforms in response to public revelations about their unlawful contracts.” The letter stresses the need for a strong message to be sent to others in the AI community and the broader tech industry: that violations of workers’ or investors’ rights to report wrongdoing will not be tolerated.
