OpenAI accused of imposing illegal restrictions on employees, violating whistleblower rights.

From NewsBytes: 2024-07-15 05:32:52

OpenAI is facing allegations of illegal restrictions on employees reporting securities violations to the SEC, with an exit agreement criticized for potentially stripping former employees of their equity. Whistleblowers are urging the SEC to take action to protect rights in the AI and tech industry. Senator Grassley also expressed concerns over OpenAI’s policies, emphasizing the importance of whistleblowers in national security. The company’s NDAs have been accused of discouraging employees and investors from communicating with regulators and waiving whistleblower incentives, violating legal rights. Whistleblowers have provided evidence to the SEC alleging that OpenAI’s prior NDAs were illegally restrictive, requiring employees to inform the company about any communication with regulators. CEO Sam Altman has apologized and promised reforms while denying any clawback of equity from former employees. The whistleblowers have filed a complaint urging the SEC to enforce rules allegedly violated by OpenAI, emphasizing the need to send a clear message that violations of rights will not be tolerated in the AI and tech industry.



Read more at NewsBytes: OpenAI accused of imposing illegal restrictions on employees