The U.S. Department of Justice announced Tuesday that OpenAI and its subsidiary Statsig Inc. have agreed to a $3.2 million settlement over allegations of discriminating against U.S. workers in favor of temporary visa holders during the green-card recruitment process.
The settlement resolves claims that the companies violated the Immigration and Nationality Act by allegedly creating barriers for U.S. applicants in the Permanent Labor Certification (PERM) process, a federal program for sponsoring foreign workers for permanent residency. The DOJ stated that fewer than 10 positions were involved in the investigation.
Key Terms of the Settlement
OpenAI will pay $1.2 million in civil penalties to the U.S. government and establish a $2 million back-pay fund to compensate affected workers. As part of the agreement, the company must also modify its recruitment practices to ensure compliance with federal hiring laws.
The DOJ’s Civil Rights Division alleged that OpenAI failed to post PERM-related job openings on its external website, required paper applications for these roles while accepting electronic submissions for others, and advertised some positions on late-night radio—measures investigators said discouraged U.S. applicants.
DOJ Statement and Legal Rationale
Assistant Attorney General Harmeet K. Dhillon of the DOJ’s Civil Rights Division stated: “It is illegal to discriminate against U.S. workers by preferring temporary visa holders for jobs. 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.”
The DOJ emphasized that the settlement reflects broader harm caused to American workers when they are excluded from high-paying technology jobs. The agency noted that this is one of at least a dozen settlements since 2025 under its Protecting U.S. Workers Initiative, which targets alleged discrimination against U.S. job applicants in favor of foreign workers.
OpenAI’s Response
OpenAI acknowledged the settlement but disputed the DOJ’s findings. In a statement, a company spokesperson said: “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.”
The spokesperson added that OpenAI’s mission is to ensure AGI benefits all of humanity and that attracting global talent is essential to maintaining U.S. leadership in AI. The company did not immediately respond to requests for further comment.
Background on the PERM Process
The PERM program allows companies to sponsor foreign workers for permanent residency but requires them to demonstrate that no qualified U.S. workers were available for the role after a good-faith recruitment effort. The DOJ alleged that OpenAI’s recruitment practices undermined this requirement by making it more difficult for U.S. applicants to apply.
Policy Context and Broader Implications
The settlement aligns with broader federal efforts to scrutinize hiring practices in the tech sector, particularly regarding the use of temporary employment visas. The Trump administration has previously criticized companies for allegedly abusing visa programs, including imposing a $100,000 fee on new H-1B visas—a policy currently blocked pending legal challenges.
The DOJ’s action underscores ongoing tensions between U.S. labor protections and the tech industry’s reliance on global talent pools to fill specialized roles. Legal experts note that this case may set a precedent for how similar allegations are investigated and resolved in the future.
Next Steps
As part of the settlement, OpenAI must implement changes to its hiring practices to ensure compliance with federal law. The company has not indicated whether it plans to appeal the DOJ’s findings.