OpenAI pays $3.2m settlement

The U.S. Justice Department said on August 4 that OpenAI OpCo LLC and its subsidiary Statsig Inc. agreed to a combined $3.2 million settlement over allegations they discriminated against U.S. workers in hiring tied to the green-card sponsorship process. The department said the companies preferred workers with temporary employment visas during recruitment under the Permanent Labor Certification program, known as PERM. OpenAI denied wrongdoing in the settlement agreement. The deal requires payments to the government and to affected workers, along with changes to recruiting practices and three years of federal oversight. ### What exactly did the government accuse OpenAI and Statsig of doing? The Justice Department said OpenAI and Statsig violated the Immigration and Nationality Act by making it harder for U.S. workers to apply for certain PERM-linked jobs. According to the department, the companies did not post those openings on their public careers site even though they used that site for other roles. (justice.gov) The department also said the companies required paper applications by mail for PERM positions while allowing electronic applications for other jobs. In its August 4 release, the department said OpenAI took additional steps to discourage U.S. applicants, including running job ads on late-night radio. ### What is PERM, and why does it matter here? (justice.gov) The PERM program allows employers to sponsor workers for permanent resident status if they first conduct good-faith recruitment and cannot find qualified U.S. workers, the Justice Department said. That process is central to many employment-based green-card cases because employers must test the U.S. labor market before moving forward with sponsorship. (justice.gov) The settlement agreement says the government’s investigation found reasonable cause to believe OpenAI engaged in a pattern or practice of citizenship-status discrimination beginning no later than June 2023 and continuing until at least April 2025. The agreement says Statsig was alleged to have committed a similar violation in July 2025. ### How much is OpenAI paying, and where does the money go? The settlement totals $3.2 million. (justice.gov) The Justice Department said $1.2 million will be paid to the United States in civil penalties and $2 million will be placed in a back-pay fund for workers the government says were harmed by the recruiting practices. The department said fewer than 10 PERM positions were at issue. (justice.gov) Assistant Attorney General Harmeet K. Dhillon said the size of the resolution reflected harm to U.S. workers who were shut out of applying for “lucrative technology jobs,” according to the department’s release. ### Did OpenAI admit wrongdoing? OpenAI said in the settlement agreement that it denies the government’s allegations and denies wrongdoing or liability. (justice.gov) The agreement says the parties entered the settlement to resolve the investigations without further delay or expense, and that the deal should not be interpreted as an admission of a legal violation. Newsweek reported on August 6 that the settlement followed its earlier reporting on H-1B hiring and green-card sponsorship issues at OpenAI. (justice.gov) Reuters and other outlets separately reported the Justice Department announcement on August 4. ### What changes does the settlement require now? The August 4 agreement requires OpenAI to give U.S. workers a fair chance to apply for PERM jobs by posting those roles on its public career website and accepting electronic applications, the Justice Department said. (justice.gov) The department also said the company must train personnel on anti-discrimination rules, revise employment policies, and comply with monitoring and reporting requirements. (newsweek.com) The settlement agreement says those obligations will last three years from the effective date of the deal. The Justice Department opened an independent investigation of OpenAI and three related charge-based investigations on August 13, 2025, and opened a charge-based investigation of Statsig on September 9, 2025, according to the agreement. The next formal step is administration of the three-year settlement terms, including the $2 million back-pay fund and Justice Department monitoring laid out in the signed agreement. (justice.gov 1) (justice.gov 2)