WASHINGTON, — OpenAI OpCo LLC and its subsidiary Statsig Inc. agreed Tuesday to pay $3.2 million to settle a U.S. Justice Department claim that the companies favored workers on temporary visas over American applicants during green-card recruitment.
The Civil Rights Division said the settlement resolves allegations that the firms violated the Immigration and Nationality Act while conducting Permanent Labor Certification, or PERM, hiring.
Under PERM rules, employers must show they could not find qualified U.S. workers before sponsoring foreign employees for permanent residency. Discrimination based on citizenship status is prohibited.
Alleged recruitment practices
Investigators found that OpenAI did not post the PERM positions on its external careers website, even though the company routinely advertised other openings there. For the roles in question, applicants were required to submit paper applications by mail. Other company jobs accepted electronic submissions.
Some of the positions were also advertised on late-night radio. The Justice Department said these steps limited the pool of U.S. applicants. Fewer than ten jobs were involved. The department identified OpenAI OpCo LLC, based in San Francisco, and Statsig Inc., based in Bellevue, Washington, as the parties responsible.
Terms of the settlement
Of the $3.2 million total, OpenAI will pay $1.2 million in civil penalties to the United States. The remaining $2 million will go into a fund to compensate U.S. workers affected by the practices.
The company also agreed to change its recruitment methods. Future PERM positions must appear on OpenAI’s public careers site. Electronic applications will be accepted. Staff involved in hiring will receive training on anti-discrimination rules under the Immigration and Nationality Act.
The company will revise its internal policies and submit to monitoring and reporting requirements set by the Justice Department.
The settlement does not include an admission of liability by OpenAI.
Official statements
Assistant Attorney General Harmeet K. Dhillon, who leads the Civil Rights Division, said preferring temporary visa holders over U.S. workers is illegal.
“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,” Dhillon said in the department’s announcement.
A spokesperson for OpenAI did not respond to requests for comment on the settlement.
The program targets employers accused of discriminating against American workers in favor of those holding temporary employment visas during PERM recruitment. The department has reached multiple settlements with technology and staffing firms under the initiative.
PERM allows companies to sponsor foreign workers for green cards only after a good-faith search fails to locate qualified U.S. candidates. Employers must advertise the jobs and consider U.S. applicants on equal terms. The Justice Department said OpenAI’s methods fell short of those requirements for the limited set of positions under review.
The settlement comes amid continued scrutiny of hiring practices across the technology sector. Companies that rely on specialized talent often use the PERM process to retain foreign workers already in the United States on temporary visas. Federal rules require those employers to treat U.S. applicants the same way they treat visa holders during the certification stage.
OpenAI has faced separate legal matters in recent months, including a trade-secrets dispute with Apple. The Justice Department has pursued similar discrimination claims against other large employers.
The OpenAI agreement requires the company to adjust how it advertises and accepts applications for any future PERM roles, with the stated goal of giving American workers a clearer path to compete for those jobs.
The Civil Rights Division said it will continue to investigate employers that fail to conduct open recruitment during the permanent residency process. Workers who believe they were denied fair consideration can contact the Immigrant and Employee Rights Section.
