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Federated learning (FL) is a learning paradigm that allows the central server to learn from different data sources while keeping the data private locally. Without controlling and monitoring the local data collection process, the locally available training labels are likely noisy, i.e., the collected training labels differ from the unobservable ground truth. Additionally, in heterogenous FL, each local client may only have access to a subset of label space (referred to as openset label learning), meanwhile without overlapping with others. In this work, we study the challenge of FL with local openset noisy labels. We observe that many existing solutions in the noisy label literature, e.g., loss correction, are ineffective during local training due to overfitting to noisy labels and being not generalizable to openset labels. For the methods in FL, different estimated metrics are shared. To address the problems, we design a label communication mechanism that shares "contrastive labels" randomly selected from clients with the server. The privacy of the shared contrastive labels is protected by label differential privacy (DP). Both the DP guarantee and the effectiveness of our approach are theoretically guaranteed. Compared with several baseline methods, our solution shows its efficiency in several public benchmarks and real-world datasets under different noise ratios and noise models.