OpenAI — Junior / Entry Level

California-based, so traditional non-competes are unenforceable. However, OpenAI has been investigated by the FTC and California AG for using equity clawback provisions as de facto non-competes that employees must waive to receive departing equity.

Standard IP assignment clause. The scope is very broad given OpenAI's position at the center of the AI industry.

Standard at-will employment. OpenAI's rapid growth means few mass layoffs, but termination practices for individual underperformers are not notably generous.

OpenAI faced significant controversy in 2024 when it was reported that departing employees were required to sign NDAs and non-disparagement agreements — or potentially forfeit vested equity. This practice, which functions as a de facto non-compete, was the subject of FTC investigation.

Standard mandatory arbitration for most employment disputes. No notable positive deviations from industry norms.

OpenAI has been criticized for using deliberately opaque equity and separation agreement provisions that create de facto restrictions not disclosed in the standard employment agreement. The California AG investigation highlighted this lack of transparency.