OpenAI to Pay $3.2 Million Following Agreement with U.S. Department of Justice Over Hiring Discrimination

OpenAI, the artificial intelligence company, has agreed to pay $3.2 million to settle allegations from the U.S. government regarding discrimination against American workers and the preference for employees with temporary work visas.

According to reports from Mihan Blockchain, the U.S. Department of Justice (DOJ) officially announced this agreement on Tuesday, which includes OpenAI and its software development subsidiary in Washington, Statsig Inc.

Under the agreement, OpenAI will pay $1.2 million as a civil penalty to the U.S. government and will establish a $2 million fund for back pay to compensate victims affected by the discriminatory practices of these companies.

Harmeet K. Dhillon, Assistant Attorney General in the DOJ's Civil Rights Division, stated:

This significant agreement ensures that OpenAI compensates for damages and changes its hiring practices to provide American workers with a fair opportunity to access coveted technology jobs; discrimination against American workers by favoring holders of temporary visas for jobs is illegal.

This agreement came after investigations by the DOJ through the Immigrant and Employee Rights Section (IER), which found that OpenAI and Statsig violated the Immigration and Nationality Act (INA) by discriminating against American workers during the Permanent Labor Certification (PERM) process. The PERM program allows employers to sponsor foreign workers for permanent residency (green card) if they cannot find qualified American workers after a good faith recruitment effort.

According to DOJ investigations, OpenAI did not advertise the job positions it intended to fill through the PERM program on its public job recruitment website, while it followed standard procedures for other jobs. The company also required applicants for PERM positions to submit their applications in paper form via mail (while electronic submission was allowed for other jobs). Additionally, the DOJ stated that OpenAI even used tactics such as broadcasting job advertisements late at night on the radio to prevent American workers from being informed and applying. The number of job positions involved in this case has been reported to be fewer than ten.

OpenAI's Response and Agreement Implications

According to the text of the agreement, OpenAI has rejected the findings of the DOJ. The document states:

OpenAI denies the IER allegations and the findings of OpenAI's investigations and continues to deny them. This agreement should not be construed, interpreted, or understood by any party as an admission of violation of any law or regulation, or any wrongdoing or liability.

However, in addition to paying civil penalties and establishing a compensation fund, this agreement requires OpenAI to publish PERM job positions on its public job website and accept electronic applications for them going forward. Furthermore, this AI developer is required to train its employees on the anti-discrimination requirements of the INA and review its hiring policies.

OpenAI has also agreed to be monitored by the DOJ and its reporting requirements to prevent future instances of discrimination.

The U.S. Department of Justice announced that this is the thirteenth agreement since the re-launch of the American Worker Protection Initiative in 2025; a program created to address companies that illegally deprive American workers of job opportunities by favoring holders of work visas.

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