OpenAI settles federal hiring case and agrees to change recruitment practices nationwide.
OpenAI has agreed to pay $3.2 million to settle hiring discrimination claims brought by the U.S. Department of Justice (DOJ). The department said the company unfairly favored foreign workers with temporary employment visas instead of qualified U.S. workers. The agreement, announced by the Justice Department’s Civil Rights Division, also includes changes to the company’s hiring process that are meant to give U.S. job seekers equal access to future openings.
The settlement involves OpenAI OpCo LLC, commonly known as OpenAI, based in San Francisco, and its subsidiary, Statsig Inc., located in Bellevue, Washington. Federal officials said the companies violated the Immigration and Nationality Act during the Permanent Labor Certification (PERM) process, which allows employers to sponsor foreign workers for permanent residency when qualified U.S. workers cannot be found for a position.
According to the DOJ, the investigation found that OpenAI handled certain PERM job openings differently from other positions. While most company jobs were posted on its public careers website and accepted online applications, the PERM positions were not. Instead, applicants had to submit paper applications through the mail. Investigators also said the company placed radio advertisements for some of those openings during late-night hours, making the jobs less visible to potential applicants and reducing chances for U.S. workers to be considered. Federal officials said these recruiting methods were different from the company’s normal hiring process and created added barriers for job seekers who otherwise may have applied. The department said employers participating in the PERM program are expected to make genuine efforts to recruit qualified American workers before seeking to sponsor foreign employees for permanent residency. Although fewer than ten positions were involved, the DOJ said the financial settlement reflects the value of those employment opportunities as well-paying jobs and the effect of limiting access to them.
As part of the agreement over OpenAI’s hiring discrimination claims, the company will pay $1.2 million in civil penalties to the federal government. It will also create a $2 million back pay fund for people who may have been harmed by the hiring practices identified during the investigation. The terms also require OpenAI to change the way it recruits for future PERM positions. Going forward, the company must post those openings on its public careers website and accept electronic applications as well as update employment policies, provide training to employees involved in hiring, and comply with federal monitoring and reporting requirements.
The hiring discrimination claims are part of the federal agency’s Protecting U.S. Workers Initiative, which was restarted in 2025. The program focuses on enforcing laws that prohibit employers from discriminating against U.S. workers based on citizenship. Federal officials said this settlement marks the thirteenth agreement reached under the renewed initiative and future investigations will continue when there is evidence that employers may have limited opportunities for American workers in favor of sponsoring foreign employees for permanent residency. Depending on the findings, companies may face civil penalties, compensation payments to affected workers, mandatory training, and oversight designed to prevent similar conduct. The department encourages workers and employers with questions about citizenship status discrimination to contact its Immigrant and Employee Rights Section for information about workplace protections under federal law.
Sources:
Civil Rights Division Secures Settlement with OpenAI for Discriminating Against U.S. Workers
Visa holders vs US workers: OpenAI pays $3.2M to settle DOJ’s employee discrimination allegations
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