OpenAI and its software-development subsidiary, Statsig Inc., have agreed to pay $3.2 million to settle allegations that they discriminated against U.S. workers while recruiting employees through a federal immigration program.
The Justice Department’s Civil Rights Division alleged that the companies favored workers holding temporary employment visas during the Permanent Labor Certification, or PERM, process. OpenAI did not admit liability as part of the settlement.
The PERM program allows employers to sponsor foreign workers for permanent residency after conducting good-faith recruitment and determining that qualified U.S. workers are unavailable. Employers may not discriminate against applicants because of their citizenship or immigration status.
According to the Justice Department, OpenAI did not advertise the affected PERM positions on its public employment website, despite routinely posting other job openings there. The company allegedly required applicants to submit paper applications by mail while accepting electronic applications for positions outside the PERM process.
Federal investigators also alleged that OpenAI took other steps that discouraged U.S. workers from applying, including airing recruitment advertisements on the radio late at night.
Fewer than 10 PERM positions were involved, according to the department. Officials said the settlement reflects the potential harm caused when American workers are denied opportunities to apply for high-paying technology jobs.
“It is illegal to discriminate against U.S. workers by preferring temporary visa holders for jobs,” Assistant Attorney General Harmeet K. Dhillon said. She said the agreement would require OpenAI to change its recruitment practices and give U.S. workers a fair opportunity to compete for positions.
Under the settlement, OpenAI will pay $1.2 million in civil penalties to the federal government and establish a $2 million fund to provide back pay to people affected by the alleged discrimination.
The company must also post PERM-related positions on its public careers website, accept electronic applications, train employees on the Immigration and Nationality Act’s anti-discrimination provisions and revise its employment policies. OpenAI will additionally be subject to Justice Department monitoring and reporting requirements.
The agreement is the 13th settlement reached since the Justice Department relaunched its Protecting U.S. Workers Initiative in 2025. The initiative targets employers accused of unlawfully favoring employment-visa holders over qualified U.S. workers.
About the Author
Discover more from Right Now Oregon
Subscribe to get the latest posts sent to your email.
