OpenAI has agreed to a $3.2 million settlement with the U.S. Department of Justice to resolve claims of hiring discrimination against American workers. The investigation revealed that OpenAI and its subsidiary, Statsig Inc., favored applicants with temporary employment visas during the Permanent Labour Certification process.
The Department of Justice alleges that the companies bypassed standard hiring protocols. This included failing to list jobs on their public website, requiring applicants to submit paper-based materials, and placing recruitment ads on radio stations during overnight hours. Such actions effectively limited the applicant pool for high-demand technology roles.
Under the terms of the settlement, OpenAI will pay $1.2 million in civil penalties to the government. An additional $2 million fund will provide back-pay to individuals impacted by these practices. The agreement also mandates that the company update its recruitment procedures to ensure compliance with the Immigration and Nationality Act. OpenAI must now post all positions on its public career site and accept electronic applications moving forward.
While OpenAI has signed the settlement agreement, the company denies the Department of Justice's findings. The firm maintains that the agreement is not an admission of liability or wrongdoing. Moving forward, the company is subject to federal monitoring and mandatory staff training regarding anti-discrimination laws to prevent future occurrences.
This case marks the 13th settlement of its kind since the federal government began an enforcement initiative in 2025 targeting companies that prioritize visa-holders over qualified domestic candidates. The resolution highlights the ongoing federal focus on hiring transparency within the technology sector.