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DOJ settles with OpenAI over green-card hiring practices

Created at 5 Aug · 9:41 PM1 source↑ Market-relevant
IN SHORT

The Justice Department's Civil Rights Division announced a settlement with OpenAI and its former subsidiary Statsig, requiring three years of oversight over the AI lab's hiring practices. The companies will pay $3.2 million to resolve allegations of discriminating against U.S. citizens in favor of foreign workers seeking green cards.

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Key Numbers

3 yearsoversight period for OpenAI's hiring practices
$3.2 milliontotal settlement amount
$1.2 millionfine paid by OpenAI and Statsig
$2 millionrestitution fund for harmed U.S. citizens
fewer than 10roles at issue in the case

Who's Involved

Justice Department's Civil Rights Division
announced settlement with OpenAI and Statsig
OpenAI
AI lab facing DOJ oversight on hiring practices
Statsig
once-subsidiary of OpenAI, also part of settlement
DOJ settles with OpenAI over green-card hiring practices

↳ Why This Matters

This settlement highlights the Justice Department's ongoing efforts to enforce immigration and labor laws, signaling increased scrutiny on how technology companies manage foreign worker sponsorships and their obligations to U.S. citizens.

Key facts

  • OpenAI and Statsig have reached a settlement with the Justice Department's Civil Rights Division.
  • The settlement mandates three years of oversight on OpenAI's green-card employee sponsorship hiring practices.
  • The companies will pay a total of $3.2 million, comprising a $1.2 million fine and $2 million for potential restitution to U.S. citizens.
  • The DOJ alleged that OpenAI and Statsig violated the Immigration and Nationality Act by using tactics to deter U.S. citizens from applying for jobs requiring green-card sponsorship.
  • The investigation into OpenAI and Statsig began separately before OpenAI acquired Statsig.

The Justice Department's Civil Rights Division announced on Wednesday that OpenAI and its former subsidiary Statsig have agreed to a settlement that includes three years of oversight over the AI lab's hiring practices related to green-card sponsorships.

The DOJ alleged that the companies employed tactics to prevent U.S. citizens from applying for jobs held by immigrant employees for whom they were sponsoring permanent residency. These tactics included not listing roles on public job boards, advertising late at night, and requiring paper applications. OpenAI and Statsig did not admit wrongdoing but agreed to pay $3.2 million, with $1.2 million designated as a fine and $2 million set aside for restitution to any U.S. citizens found to have been harmed.

The settlement addresses alleged violations of the Immigration and Nationality Act (INA), which requires companies to seek qualified U.S. citizens before pursuing permanent residence applications for foreign workers. The DOJ stated that its investigation into OpenAI and Statsig began separately before OpenAI acquired Statsig in September 2025. This agreement is part of a broader effort by the DOJ to increase enforcement against companies engaging in such practices, following similar settlements with other major tech firms like Facebook and Apple during the Biden administration.

Frequently asked questions

The DOJ alleged that OpenAI and Statsig violated the Immigration and Nationality Act by using tactics to prevent qualified U.S. citizens from applying for jobs held by immigrant employees being sponsored for green cards.

The companies agreed to pay a total of $3.2 million, which includes a $1.2 million fine and $2 million to be used for restitution to U.S. citizens who may have been harmed.

The oversight includes drafting and obtaining approval for PERM-role hiring policies and submitting semi-annual reports on hiring statistics for foreign employees and U.S. citizens.

What Happens Next

01OpenAI and Statsig will submit to three years of DOJ oversight on their PERM role hiring policies.
02The companies must submit semi-annual reports detailing foreign employee applications, U.S. citizen interviews, and other statistics.
03The DOJ will determine restitution for U.S. citizens who applied for the jobs in question.

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Cadence

How It Developed

The Justice Department's Civil Rights Division announced a settlement with OpenAI and Statsig.
The settlement requires three years of oversight over OpenAI's hiring practices.
The companies will pay $3.2 million, including a $1.2 million fine and $2 million for restitution to harmed U.S. citizens.
The DOJ alleged violations of the Immigration and Nationality Act by preventing U.S. citizens from applying for jobs held by immigrant employees.
The DOJ investigated OpenAI and Statsig separately before their acquisition.
This settlement is part of an increased crackdown by the DOJ on such hiring practices.

Sources

T1
Trump’s DOJ gains oversight of OpenAI’s green-card employee sponsorshipsTechCrunch

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