OpenAI forced to pay $3.2 MILLION in DOJ discrimination suit defending American workers against foreign labor

OpenAI has agreed to pay $3.2 million to settle allegations by the U.S. Department of Justice that it illegally discriminated against American workers by favoring temporary visa holders during its hiring process.

The Justice Department's Civil Rights Division announced Tuesday that OpenAI and its subsidiary, Statsig Inc., reached the settlement after a federal investigation found the companies violated the Immigration and Nationality Act during recruitment for permanent residency sponsorship. According to the Department of Justice, OpenAI used hiring practices that discouraged qualified U.S. workers from applying for highly paid technology positions while pursuing foreign workers through the Permanent Labor Certification (PERM) process.

"It is illegal to discriminate against U.S. workers by preferring temporary visa holders for jobs," Assistant Attorney General Harmeet K. Dhillon said. "This substantial settlement ensures that OpenAI redresses harm and changes its recruitment practices so that U.S. workers receive a fair opportunity for highly sought-after technology positions." Federal investigators found that OpenAI failed to advertise PERM positions on its public careers website, despite routinely posting other job openings there. Instead, applicants for those positions were required to submit paper applications by mail, even though electronic applications were accepted for the company's other vacancies.

The Justice Department also alleged that OpenAI took additional steps to discourage American applicants, including advertising some positions on late-night radio broadcasts. Although fewer than ten PERM positions were involved, officials said the financial settlement reflected the significant harm caused when U.S. workers were denied the opportunity to compete for lucrative technology jobs.

Under the agreement, OpenAI will pay $1.2 million in civil penalties to the federal government and establish a $2 million back-pay fund for workers who may have been harmed by the discriminatory hiring practices. The company must also overhaul its recruitment procedures by publicly advertising PERM positions on its careers website, accepting electronic applications, revising its employment policies, and providing anti-discrimination training for hiring staff. The settlement further places OpenAI under Justice Department monitoring and reporting requirements designed to prevent future violations.

The PERM program allows employers to sponsor foreign workers for permanent residency when they can demonstrate that no qualified U.S. workers are available for the position. Federal law requires employers participating in the program to conduct genuine recruitment efforts and prohibits discrimination against American workers based on citizenship status.

The resolution marks the thirteenth settlement secured under the Justice Department's Protecting U.S. Workers Initiative, relaunched in 2025 to crack down on employers accused of favoring foreign visa holders over qualified American workers. The department said it intends to continue seeking maximum civil penalties against companies found to have violated federal anti-discrimination laws.