OpenAI pays $3.2m settlement

The Justice Department said on August 4 that OpenAI and its subsidiary Statsig agreed to pay $3.2 million to settle allegations they discriminated against U.S. workers during green-card recruitment. The department said the companies favored workers with temporary employment visas in hiring tied to the federal PERM process, which employers use when sponsoring workers for permanent residency. OpenAI denied the allegations in the settlement agreement and said the deal does not amount to an admission of wrongdoing. The case adds another legal front for one of the best-known artificial intelligence companies as federal scrutiny of tech hiring practices widens. ### How did the Justice Department say the hiring process worked? The Justice Department said OpenAI and Statsig violated the Immigration and Nationality Act by disadvantaging U.S. workers during PERM recruitment. According to the department, the companies did not post PERM jobs on their public careers site even though that was their standard practice for other roles, and they required mailed paper applications instead of electronic submissions. (justice.gov) The department also said some positions were advertised on late-night radio, which it described as another step that discouraged U.S. workers from applying. The PERM program requires employers to carry out good-faith recruitment and show they could not find qualified U.S. workers before sponsoring a foreign worker for permanent resident status. The Justice Department’s Immigrant and Employee Rights Section enforces the anti-discrimination provision of the Immigration and Nationality Act, which bars citizenship-status discrimination in hiring and recruitment. (justice.gov) ### How much money is involved, and where does it go? The settlement totals $3.2 million. The Justice Department said $1.2 million will be paid in civil penalties to the U.S. government and $2 million will fund back pay for workers harmed by the companies’ practices. Fewer than 10 PERM positions were at issue, the department said, but it described the jobs as lucrative technology roles and said the size of the resolution reflected the harm caused when U.S. workers were shut out of applying. (justice.gov) Assistant Attorney General Harmeet K. Dhillon said, “It is illegal to discriminate against U.S. workers by preferring temporary visa holders for jobs.” ### What period did investigators examine? The settlement agreement says the Justice Department opened an independent investigation of OpenAI on August 13, 2025, and opened three related charge-based investigations the same day. The department opened a separate charge-based investigation of Statsig on September 9, 2025. The agreement says investigators found reasonable cause to believe OpenAI engaged in a pattern or practice of citizenship-status discrimination in five PERM-related advertisements beginning no later than June 2023 and continuing until at least April 2025. (justice.gov) The agreement says Statsig committed one PERM-related violation in July 2025. ### Did OpenAI admit wrongdoing? OpenAI denied the allegations in the settlement agreement. (justice.gov) The document says the agreement “shall not be deemed, construed, or interpreted” as an admission of any legal violation, wrongdoing, or liability. That structure is common in civil settlements, where companies agree to pay penalties and change practices without conceding the government’s claims. (justice.gov) In this case, the Justice Department said the companies chose to resolve the investigations without further delay or expense. ### What does OpenAI have to change now? Under the settlement, OpenAI must post PERM jobs on its public careers website and accept electronic applications from U.S. workers for those roles. (justice.gov) The agreement also requires training for personnel, revisions to employment policies, and federal monitoring and reporting requirements. The term of the settlement is three years from the effective date, according to the agreement. The August 4 announcement also fits into a broader enforcement push. The Justice Department said in a 2025 case against Epik Solutions that it had relaunched its Protecting U.S. Workers Initiative, and the Immigrant and Employee Rights Section’s recent case list includes multiple technology-sector matters involving visa-related discrimination claims. (justice.gov) The next concrete step is compliance. Over the next three years, OpenAI and Statsig must make the required payments, update recruiting procedures, train staff, and submit to Justice Department monitoring under the agreement’s terms. (justice.gov 1) (justice.gov 2)