Key facts
- OpenAI and subsidiary Statsig will pay $3.2 million to settle U.S. government claims.
- The companies allegedly favored foreign workers with temporary employment visas and discriminated against U.S. job applicants.
- Discouraging tactics included requiring paper applications, late-night radio job ads, and not posting openings online.
- The settlement comprises $1.2 million in penalties and $2 million for alleged victims.
- OpenAI will revise employment policies, conduct training, and undergo Justice Department monitoring.
OpenAI and its subsidiary Statsig have agreed to pay $3.2 million to resolve U.S. government allegations of discrimination against American job applicants in favor of foreign workers on temporary visas. The U.S. Justice Department announced the settlement Tuesday, stating that the companies engaged in practices designed to discourage U.S. workers from applying for technology positions.
According to the Justice Department, these practices included requiring paper applications, advertising jobs late at night on the radio, and failing to post openings on external websites. The companies allegedly violated the Immigration and Nationality Act, which prohibits citizenship-based discrimination. While fewer than 10 positions were at issue, the settlement amount reflects the harm caused to U.S. workers.
Assistant Attorney General Harmeet Dhillon stated that the settlement aims to ensure OpenAI rectifies harm and changes its recruitment practices to provide fair opportunities for U.S. workers. The settlement includes $1.2 million in penalties and $2 million designated for compensating alleged victims. OpenAI has also committed to revising its employment policies, implementing training programs, and accepting monitoring by the Justice Department.
This case is one of at least a dozen settlements the Justice Department has reached since last year concerning alleged discrimination against U.S. workers, many of which involved tech companies. President Donald Trump has previously advocated for limiting the hiring of foreign workers, proposing measures such as a $100,000 fee on new H-1B visas, though this fee has faced legal challenges.