OpenAI Settles Worker Discrimination Case with Justice Department
The agreement includes $1.2 million in penalties, a $2 million compensation fund and three years of Justice Department monitoring.
- On Tuesday, OpenAI and its subsidiary Statsig Inc. agreed to pay $3.2 million to settle U.S. Justice Department claims that they discriminated against American workers by favoring temporary visa holders during hiring.
- The DOJ alleged that between June 2023 and April 2025, the companies bypassed standard recruitment for PERM roles by requiring mailed applications and advertising positions on late-night radio to discourage U.S. applicants.
- Although fewer than 10 positions were at issue, the $3.2 million settlement includes $1.2 million in civil penalties and a $2 million fund to compensate U.S. workers shut out of applying for lucrative technology roles.
- OpenAI denied wrongdoing but stated it reached the deal to "resolve the matter and move forward" with its PERM program, which the company claims is critical for retaining international talent.
- This agreement marks the Justice Department's 13th settlement under its re-launched Protecting U.S. Workers Initiative, which enforces the Immigration and Nationality Act's ban on citizenship status discrimination across the technology sector.
41 Articles
41 Articles
OpenAI Settles With the DOJ for $3.2 Million After Being Accused of Discriminating Against US Workers In Hiring, Admits No Wrongdoing
Already a subscriber? Make sure to log into your account before viewing this content. You can access your account by hitting the “login” button on the top right corner. Still unable to see the content after signing in? Make sure your card on file is up-to-date. OpenAI has agreed to a $3.2 million settlement with the Justice Department over allegations it discriminated against US workers by steering jobs toward temporary visa holders. G…
OpenAI to Pay $3.2M After DOJ Says It Favored Foreign Visa Holders Over US Workers: 'It Is Illegal'
OpenAI has agreed to pay $3.2 million to settle allegations by the US Department of Justice that it discriminated against American job seekers by favouring foreign workers on temporary employment visas during parts of its hiring process. While the ChatGPT maker denied violating the law, the case swiftly became a high-profile enforcement action targeting hiring practices linked with America's employment-based immigration system. 'It is illegal to…
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