OpenAI Agrees to $3.2 Million DOJ Settlement Over Alleged Hiring Discrimination Against U.S. Workers

OpenAI and its subsidiary, Statsig Inc., have agreed to pay a combined $3.2 million to settle allegations by the U.S. Department of Justice that the companies discriminated against U.S. workers during hiring conducted through the Permanent Labor Certification (PERM) process. The Justice Department said the settlement resolves claims that the companies violated the Immigration and Nationality Act by favoring workers with temporary employment visas over qualified U.S. applicants.

According to the Justice Department, the investigation found that OpenAI handled PERM recruiting differently from its standard hiring process in ways that discouraged U.S. workers from applying. Federal officials alleged the company did not post PERM positions on its public careers website despite routinely advertising other openings there, required paper applications for those roles while allowing electronic applications for other jobs, and used additional recruiting methods that made the positions less accessible, including airing radio advertisements late at night.

The settlement requires OpenAI to pay $1.2 million in civil penalties and establish a $2 million back-pay fund for individuals affected by the alleged discriminatory practices. The agreement also requires the company to post PERM positions on its public careers website, accept electronic applications for those openings, revise its employment policies, provide training on the Immigration and Nationality Act's anti-discrimination requirements, and comply with Justice Department monitoring and reporting obligations.

"It is illegal to discriminate against U.S. workers by preferring temporary visa holders for jobs," said Assistant Attorney General Harmeet K. Dhillon of the Justice Department's Civil Rights Division. "This substantial settlement ensures that OpenAI redresses harm and changes its recruitment practices so that U.S. workers receive a fair opportunity for highly sought-after technology positions."

The Justice Department said the allegations involve fewer than ten PERM positions but stated that the settlement amount reflects the impact of preventing U.S. workers from competing for technology jobs. The PERM program allows employers to sponsor workers for permanent resident status after conducting good-faith recruitment and determining that qualified U.S. workers are unavailable. The department said employers participating in the program cannot unlawfully discriminate against U.S. workers based on citizenship status.

As part of the resolution, OpenAI agreed to change its hiring practices for future PERM recruitment but denied wrongdoing under the settlement agreement.

The Justice Department said the case is the thirteenth settlement reached since relaunching its Protecting U.S. Workers Initiative in 2025. The initiative focuses on enforcing the Immigration and Nationality Act's prohibition on citizenship-status discrimination by employers that unlawfully favor workers holding employment visas over eligible U.S. workers.

This analysis is based on reporting from U.S. Department of Justice.

Image courtesy of Natalie Peeples/Axios.

This article was generated with AI assistance and reviewed for accuracy and quality.