OpenAI Settles $3.2M Discrimination Case Over U.S. Worker Visa Preferences
Key Takeaways
- ▸OpenAI to pay $3.2M in combined penalties and victim compensation ($1.2M civil penalties + $2M back-pay fund)
- ▸DOJ found systematic discrimination including hidden job postings, paper-only applications, and late-night radio ads designed to discourage U.S. worker applicants
- ▸OpenAI required to post PERM positions publicly, accept electronic applications, and undergo staff training on immigration law compliance
Summary
The Justice Department's Civil Rights Division announced a $3.2 million settlement with OpenAI and its subsidiary Statsig Inc. for systematically discriminating against U.S. workers during the Permanent Labor Certification (PERM) hiring process. The investigation found that OpenAI deliberately discouraged American applicants by not posting positions on its external career website, requiring paper applications instead of electronic ones, and advertising positions late at night on radio. The settlement marks the 13th enforcement action under the DOJ's Protecting U.S. Workers Initiative relaunched in 2025.
Under the settlement terms, OpenAI will pay $1.2 million in civil penalties to the United States and establish a $2 million back-pay fund to compensate affected workers. The company must now post all PERM-related positions on its public career website, accept electronic applications, train personnel on immigration law anti-discrimination requirements, and implement revised employment policies. OpenAI will also be subject to ongoing departmental monitoring and reporting to prevent future discrimination against U.S. workers in favor of temporary visa holders.
- Thirteenth settlement under DOJ's Protecting U.S. Workers Initiative targeting illegal citizenship-based discrimination in visa sponsorship programs
