OpenAI Agrees to $3.2 Million Settlement Over DOJ Allegations of Favoring Foreign Visa Holders Over U.S. Workers
Key Takeaways
- •OpenAI and Statsig Inc. will pay a total of $3.2 million to resolve DOJ allegations that they favored foreign visa holders over qualified American workers in the PERM sponsorship process.
- •The DOJ accused OpenAI of deliberately discouraging U.S. applicants by omitting PERM job postings from its careers site, requiring paper mail-in applications, and advertising openings through late-night radio spots.
- •The settlement allocates $1.2 million toward civil penalties and $2 million toward compensating individuals identified as victims of the alleged discriminatory recruitment practices.
- •OpenAI agreed to overhaul its hiring policies, conduct employee training, and submit to continued oversight by the Justice Department, while formally denying any wrongdoing.
- •The enforcement action coincides with a broader national debate over temporary-work visa programs, including a Trump administration proposal to impose a $100,000 fee on new H-1B visas that remains held up in court.
OpenAI and its subsidiary Statsig Inc. will pay $3.2 million to settle U.S. Justice Department allegations that they discriminated against American workers by favoring foreign nationals on temporary employment visas, the DOJ announced Tuesday.
The settlement resolves claims that OpenAI and Statsig, a product-software developer, violated the Immigration and Nationality Act through the Permanent Labor Certification (PERM) process. PERM is the federally required first step for employers seeking to sponsor a foreign worker for permanent U.S. residency; it obligates companies to actively recruit and test the U.S. labor market to confirm no qualified American workers are available before proceeding with sponsorship. According to federal investigators, the companies recruited foreign workers for certain roles while taking active steps that discouraged qualified U.S. applicants from applying — undermining the core premise of that labor-market test.
Specifically, the DOJ alleged that OpenAI failed to post PERM-program positions on its careers website, even though advertising roles there was the company's standard practice for all other jobs. The company also reportedly required applicants for those PERM positions to submit paper applications by mail, while accepting electronic submissions for every other role. In some cases, OpenAI aired radio advertisements for the jobs late at night — practices the Justice Department said collectively discouraged U.S. workers from pursuing the openings.
Under the terms of the settlement, OpenAI will pay $1.2 million in civil penalties and $2 million to compensate individuals identified as victims of the alleged discrimination. The company further agreed to revise its employment and recruitment policies, conduct staff training, and submit to ongoing monitoring by the Justice Department.
OpenAI denied any wrongdoing as part of the agreement.
"It is illegal to discriminate against U.S. workers by preferring temporary visa holders for jobs," said Assistant Attorney General Harmeet Dhillon, who leads the DOJ's Civil Rights Division, 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."
The case comes amid broader political debate over temporary-work visa programs, which many leading technology companies rely on to fill specialized engineering and research roles. President Donald Trump has previously argued that many companies abuse such programs and has sought to restrict the hiring of foreign workers. Among his proposals is a $100,000 fee on new H-1B visas for highly skilled workers, though that measure remains tied up in court.
Source: Fox Business. Reuters contributed to the original report. FOX Business has reached out to OpenAI for comment.
