OpenAI and its software development subsidiary, Statsig based in Bellevue, Washington, have agreed to pay $3.2 million to resolve claims by the U.S. The settlement was announced Tuesday following an investigation into hiring practices for software engineering and business operations positions.
OpenAI Agrees to $3.2 Million Settlement With Justice Department Over Hiring Bias Claims
“It is illegal to discriminate against U.S. workers by preferring temporary visa holders for jobs,” Assistant Attorney General Harmeet K. 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.
Under the terms of the financial resolution, OpenAI will pay $1.2 million in civil penalties to the United States. The remaining $2 million is designated to establish a back-pay fund to compensate victims of the companies’ recruitment practices, as detailed by Engadget. The Department of Justice stated that the back-pay fund is specifically intended for workers who applied for the positions at issue but were not fairly considered.
Details of the Permanent Labor Certification Process Investigation
Federal investigators focused their inquiry on the Permanent Labor Certification process, commonly known as PERM. The program allows U.S. companies to sponsor temporary employment visa holders for permanent residency, such as a green card, only after proving through good-faith recruitment efforts that there are no qualified and available U.S. workers for the job.
According to the Justice Department, fewer than 10 positions were at issue across OpenAI and Statsig. Investigators determined that the companies failed to conduct standard recruitment steps, including omitting job listings from external employment websites and advertising roles on the radio late at night. Furthermore, the agency stated that OpenAI required applicants for these specific PERM positions to submit paper applications by mail, deviating from its usual practice of accepting electronic applications for other roles.
While agreeing to the financial settlement and operational updates—such as updating Immigration and Nationality Act anti-discrimination training, revising employment policies, and submitting to monitoring and reporting requirements—OpenAI formally disagreed with the government’s findings. A company spokesperson explained that the organization settled the matter to move forward with its immigration support programs.
OpenAI’s mission is to ensure that AGI benefits all of humanity,
an OpenAI spokesperson said in a statement published by Business Insider. Fulfilling that mission and maintaining America’s leadership in AI requires attracting and retaining the best talent from the United States and around the world. While we disagree with the DOJ’s findings, we reached this agreement to resolve the matter and move forward with our PERM program, which is critical for employees and candidates requiring immigration support.
Broader Context of Federal Enforcement and Tech Industry Settlements
The resolution arrives amid increased enforcement under the administration of President Donald Trump targeting companies accused of abusing the immigration visa system and circumventing domestic labor markets. The Justice Department noted that the agreement is part of a broader federal push to protect domestic workers, following similar historic settlements with major technology firms, including a 2021 settlement with Meta and a 2023 agreement with Apple over recruitment practices.
The Justice Department confirmed it will review applications from U.S. workers who believe they were shut out of the targeted positions to determine eligibility for compensation from the newly established back-pay fund.
