The DOJ announced Tuesday that OpenAI has reached a $3.2 million settlement over claims it passed over U.S. workers in favor of temporary visa holders when filling positions.
The settlement covers OpenAI OpCo LLC, the San Francisco-based artificial intelligence company, and its subsidiary Statsig Inc., a Bellevue, Washington-based software development company
The Justice Department alleged both companies violated the Immigration and Nationality Act by steering jobs toward workers with temporary employment visas during the Permanent Labor Certification process, known as PERM, which allows employers to sponsor workers for permanent resident status when they cannot find qualified U.S. applicants. Investigators found that OpenAI kept PERM-related job listings off its public career website while continuing to list other available roles there without issue. Applicants were also allegedly required to send in physical paper applications by mail, and certain openings were promoted during late-night radio slots — tactics the department characterized as deliberate barriers meant to keep U.S. workers away.
Under the settlement, OpenAI will pay $1.2 million in civil penalties to the federal government and set aside $2 million in a back-pay fund to compensate workers the department says were harmed. Although the number of affected roles was under 10, the Justice Department argued that the penalty amount was warranted given the consequences for workers denied access to well-compensated positions in the technology industry. As part of the agreement, OpenAI is required to list future PERM openings on its public career site, accept applications submitted electronically, provide anti-discrimination training to relevant employees, update its hiring policies, and allow DOJ oversight going forward. “It is illegal to discriminate against U.S. workers by preferring temporary visa holders for jobs,” Assistant Attorney General Harmeet K.