OpenAI has agreed to pay $3.2 million to settle allegations by the US Department of Justice (DOJ) that it discriminated against American workers by giving preference to temporary visa holders during parts of its hiring process, the department announced on Tuesday.
The settlement resolves claims that OpenAI and its subsidiary, Statsig Inc., violated the Immigration and Nationality Act (INA) while recruiting for jobs under the Permanent Labor Certification (PERM) programme, a pathway employers use to sponsor foreign workers for US permanent residency.
According to the DOJ, the companies failed to provide US workers with a fair opportunity to apply for certain technology positions tied to the PERM process.
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How the hiring process allegedly disadvantaged US workers
The Justice Department said its investigation found that OpenAI did not advertise PERM-related positions on its public careers website, despite routinely posting other vacancies there.
{{/usCountry}}The Justice Department said its investigation found that OpenAI did not advertise PERM-related positions on its public careers website, despite routinely posting other vacancies there.
{{/usCountry}}Instead, applicants were required to submit paper applications by mail for those roles, while electronic applications were accepted for other jobs. The department also alleged that some positions were advertised on late-night radio, a practice it said discouraged qualified US workers from applying.
Although the investigation covered fewer than 10 PERM positions, the DOJ said the alleged practices denied American workers access to highly paid technology jobs.
What the settlement requires
Under the settlement, OpenAI will pay $1.2 million in civil penalties to the US government and establish a $2 million back-pay fund for workers who may have been harmed by the hiring practices.
The company must also change how it recruits for PERM positions by:
- Posting such jobs on its public careers website.
- Accepting electronic applications instead of requiring paper submissions.
- Training staff on anti-discrimination requirements under the Immigration and Nationality Act.
- Revising its hiring policies.
- Complying with ongoing DOJ monitoring and reporting requirements.
Assistant Attorney General Harmeet K. Dhillon said employers cannot legally favor temporary visa holders over qualified US workers during the PERM process.
"It is illegal to discriminate against U.S. workers by preferring temporary visa holders for jobs," Dhillon said in a statement.
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What is the PERM program?
The PERM program allows US employers to sponsor foreign workers for permanent residency when they can demonstrate that no qualified US workers are available for a position after conducting good-faith recruitment.
The Justice Department said employers participating in the program must give US workers a genuine opportunity to compete for those jobs and cannot structure recruitment in ways that discourage domestic applicants.
The settlement is the 13th enforcement action under the DOJ's Protecting U.S. Workers Initiative, relaunched in 2025 to investigate companies accused of discriminating against US workers in favor of foreign workers holding temporary employment visas.