OpenAI to Pay $3.2 Million Settlement Over Hiring Discrimination Allegations
The Justice Department accused the AI firm of discouraging U.S. applicants to favor foreign temporary visa holders.
OpenAI Inc. and its software subsidiary Statsig Inc. will pay $3.2 million to resolve federal allegations that they systematically discriminated against American job seekers in favor of foreign visa holders, the U.S. Department of Justice announced Tuesday.
The settlement addresses claims that the artificial intelligence company violated the Immigration and Nationality Act by manipulating recruitment procedures under the Permanent Labor Certification, or PERM, program. Under the agreement, OpenAI will pay $1.2 million in civil penalties and set aside $2 million in compensation for affected job applicants, while agreeing to revise its employment policies and undergo federal monitoring. OpenAI denied wrongdoing as part of the agreement.
According to federal investigators, OpenAI established hiring hurdles for specific positions to discourage qualified domestic candidates while clearing the way for temporary visa holders. Investigators alleged that OpenAI failed to advertise PERM-related openings on its public careers website—contrary to its standard policy for other corporate roles—required candidates to mail physical paper applications, and placed job advertisements on late-night radio broadcasts.
“It is illegal to discriminate against U.S. workers by preferring temporary visa holders for jobs,” said Assistant Attorney General Harmeet 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 enforcement action reflects growing regulatory scrutiny over how technology firms manage foreign talent pipelines. The PERM program requires U.S. employers to demonstrate that no qualified domestic workers are available before sponsoring foreign employees for lawful permanent residence. Federal authorities have increasingly targeted technology companies for using burdensome application procedures to protect foreign workers already employed on temporary visas, with the DOJ previously reaching similar recruitment discrimination settlements with tech giants Meta Platforms Inc. and Apple Inc. The resolution also coincides with political efforts by President Donald Trump to restrict foreign employment programs, including a proposed $100,000 fee on new H-1B visas that remains locked in litigation.
