OpenAI pays $3.2M settlement
- OpenAI and subsidiary Statsig agreed on August 4 to pay $3.2 million to settle Justice Department allegations they discriminated against U.S. workers. - The Justice Department said OpenAI hid some PERM jobs from its public careers site, required mailed applications, and advertised some openings late at night. - The three-year agreement requires payments, policy changes, training, public postings, electronic applications, and Justice Department monitoring.
The U.S. Justice Department said on August 4 that OpenAI and its subsidiary Statsig agreed to a combined $3.2 million settlement over allegations they discriminated against U.S. workers during hiring tied to immigration sponsorship. The department said the companies favored workers with temporary employment visas during the Permanent Labor Certification, or PERM, process. OpenAI said it disagreed with the government’s findings but entered the agreement to resolve the matter and continue operating its PERM program. The case covers fewer than 10 positions, according to the department, but carries a larger payment because the jobs were described as lucrative technology roles. ### What exactly did the government say OpenAI and Statsig did? The Justice Department said OpenAI did not post some PERM-related jobs on its public careers website even though it typically posted other openings there. The department also said OpenAI required paper applications by mail for those roles while allowing electronic applications for other jobs. In addition, the department said OpenAI advertised some positions on late-night radio, which it described as another step that discouraged U.S. workers from applying. (justice.gov) The settlement agreement says federal 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. The agreement says Statsig was also investigated over one PERM-related recruitment in July 2025. ### What is the PERM process, and why was it central here? (justice.gov) The Justice Department said the PERM program allows employers to sponsor workers for permanent resident status if they first carry out good-faith recruitment and cannot find qualified U.S. workers. That recruitment step is meant to test the labor market before an employer moves forward with sponsorship. (justice.gov) The government’s theory in this case was that U.S. workers were not given the same chance to apply for PERM-covered jobs that they would have had in ordinary recruiting. Assistant Attorney General Harmeet K. Dhillon said, “It is illegal to discriminate against U.S. workers by preferring temporary visa holders for jobs.” ### How is the $3.2 million broken up? (justice.gov) The settlement requires $1.2 million in civil penalties to the United States and a $2 million back-pay fund for people the government says were harmed by the companies’ practices. The Justice Department said the payment amount reflects the harm caused when U.S. workers are shut out of applying for highly sought-after technology positions. (justice.gov) The department also said this is the 13th settlement reached since it relaunched its Protecting U.S. Workers Initiative in 2025. That places the OpenAI matter inside a broader enforcement push by the Civil Rights Division’s Immigrant and Employee Rights Section. ### What did OpenAI say in response? OpenAI said it does not accept the government’s conclusions. (justice.gov) A company spokesperson told Politico that OpenAI needs to recruit globally to pursue its mission and said, “While we disagree with the DOJ’s findings, we reached this agreement to resolve the matter and move forward with our PERM program, which is critical for employees and candidates requiring immigration support.” The settlement agreement itself says OpenAI denies the allegations and that the deal must not be treated as an admission of wrongdoing or liability. ### What changes does the agreement require now? The Justice Department said OpenAI must post PERM positions on its public careers website, accept electronic applications, train personnel on anti-discrimination rules under the Immigration and Nationality Act, revise employment policies, and comply with monitoring and reporting requirements. (politico.com) The settlement agreement says the deal takes effect when the last party signs and runs for three years. (justice.gov) Statsig was identified by the department as a Bellevue, Washington-based software development company and by its own earlier announcement as joining OpenAI in 2025. The agreement resolves the listed investigations as of its effective date, but it does not bar future government inquiries into later conduct or prevent individuals from filing their own claims. (justice.gov)
