OpenAI has agreed to pay $3.2 million to settle allegations by the U.S. Department of Justice that it illegally discriminated against U.S. workers by favoring temporary visa holders during its hiring process for certain technology jobs.
The Justice Department announced that the settlement resolves claims that OpenAI OpCo LLC and its subsidiary, Statsig Inc., violated the Immigration and Nationality Act (INA) while recruiting for positions through the Permanent Labor Certification (PERM) program.
Federal officials allege the companies discouraged qualified U.S. workers from applying for jobs while recruiting foreign workers for permanent residency sponsorship.
DOJ Says OpenAI Favored Temporary Visa Holders
According to the Justice Department’s Civil Rights Division, its investigation found that OpenAI failed to provide U.S. workers with a fair opportunity to apply for certain positions associated with the PERM program.
The department alleged the company did not post PERM positions on its public careers’ website, despite routinely advertising other openings online.
Investigators also said OpenAI required applicants seeking PERM-related positions to submit paper applications through the mail while allowing electronic applications for other jobs.
The department further alleged the company used recruitment methods that discouraged U.S. applicants, including airing radio advertisements late at night.
Although fewer than 10 positions were involved, the Justice Department said the alleged practices prevented qualified U.S. workers from competing for highly paid technology jobs.
“It is illegal to discriminate against U.S. workers by preferring temporary visa holders for jobs,” Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division said in a statement. “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.”
What OpenAI Must Do Under the Settlement
Under the agreement, OpenAI will pay:
- $1.2 million in civil penalties to the United States.
- $2 million into a back-pay fund to compensate eligible victims of the alleged discriminatory hiring practices.
The settlement also requires the company to change its hiring procedures for future PERM recruitment by:
- Posting PERM positions on its public careers website.
- Accepting electronic job applications.
- Revising employment and recruitment policies.
- Training employees on federal anti-discrimination laws.
- Complying with Justice Department monitoring and reporting requirements.
The settlement resolves the government’s allegations and is not a finding of liability by a court.
What Is the PERM Program?
The Permanent Labor Certification (PERM) program allows U.S. employers to sponsor foreign workers for lawful permanent resident status, commonly known as a green card.
Before doing so, employers must demonstrate they made a good-faith effort to recruit qualified U.S. workers and were unable to fill the position domestically.
Federal law prohibits employers from discriminating against U.S. workers based on citizenship status during that recruitment process.
Part of DOJ’s Protecting U.S. Workers Initiative
The Justice Department said the agreement is the 13th settlement reached since relaunching its Protecting U.S. Workers Initiative in 2025.
The initiative focuses on enforcing the Immigration and Nationality Act’s prohibition against citizenship-status discrimination and seeks civil penalties, back pay for affected workers when appropriate, and changes to employers’ hiring practices.
Justice Department officials said they will continue pursuing employers that unlawfully favor temporary visa holders over qualified U.S. workers during the hiring process.
Provided by Dallas Express
