OpenAI and its subsidiary Statsig Inc. will pay $3.2 million to settle Justice Department allegations that they discriminated against U.S. workers by favoring foreign workers with temporary employment visas, the department announced Tuesday. The settlement resolves claims that the companies violated the Immigration and Nationality Act through the Permanent Labor Certification (PERM) process.
Allegations of Discouraging U.S. Applicants
According to the Justice Department, OpenAI and Statsig, which develops product software, recruited foreign workers for some positions while taking steps that discouraged U.S. applicants. Federal investigators alleged that OpenAI did not advertise certain PERM positions on its careers website, even though it was standard practice for other jobs. In some cases, the company required applicants to mail paper applications for those roles while accepting electronic applications for other positions, and it aired radio advertisements late at night—practices the DOJ said were designed to limit the pool of U.S. applicants.
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“It is illegal to discriminate against U.S. workers by preferring temporary visa holders for jobs,” Assistant Attorney General Harmeet Dhillon of the Justice Department’s Civil Rights Division said 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.”
Settlement Terms and Company Response
The settlement includes $1.2 million in civil penalties and $2 million to compensate alleged victims of discrimination. OpenAI also agreed to revise its employment policies, conduct training, and submit to Justice Department monitoring. The company denied wrongdoing as part of the agreement.
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FOX Business has reached out to OpenAI for comment. Reuters contributed to this report.
Broader Context: H-1B and Immigration Policy
The case comes amid ongoing scrutiny of temporary visa programs. President Donald Trump has previously argued that many companies abuse temporary employment visa programs and has sought to limit the hiring of foreign workers, including by proposing a $100,000 fee on new H-1B visas for highly skilled workers. That proposal remains tied up in court.
For tech companies, the PERM process is a common route to sponsor foreign talent for green cards, but it requires rigorous recruitment efforts to prove no qualified U.S. workers are available. The DOJ’s action signals heightened enforcement of anti-discrimination rules in hiring, particularly in the competitive AI and technology sectors.
As the AI industry continues to expand, this settlement serves as a reminder that companies must balance global talent acquisition with strict compliance with U.S. labor laws. The outcome could influence how other tech firms structure their recruitment practices for PERM positions.
Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. The information provided is based on public reports and may be subject to change.
