OpenAI settles DOJ discrimination claims for $3.2 million over hiring bias favoring visa holders

Published Aug 4, 08:36 PM UTC

The U.S. Justice Department announced on Tuesday that OpenAI and its subsidiary Statsig will pay $3.2 million to settle allegations that they discriminated against U.S. workers by favoring temporary visa holders during hiring. The DOJ found 'reasonable cause' that the companies made it harder for U.S. workers to apply for positions they intended to fill through the Permanent Labor Certification (PERM) process, including failing to post jobs externally, not advertising on late-night radio, and requiring paper applications for PERM roles while accepting electronic ones for other positions. OpenAI disputes the findings but agreed to settle to proceed with its PERM program supporting employees needing immigration assistance. The settlement includes $1.2 million in civil penalties and $2 million for a fund to compensate affected U.S. workers. The case involves fewer than 10 positions but reflects broader Trump administration efforts to crack down on visa system abuse.