OpenAI To Fork Out $3,200,000 in Settlement After Being Accused of Discriminating Against US Workers
An artificial intelligence company is preparing to pay $3.2 million to resolve federal allegations of discriminating against American workers during recruitment for certain roles.
OpenAI OpCo LLC and its subsidiary Statsig Inc. reached the combined settlement with the Justice Department over claims they violated the Immigration and Nationality Act by preferring temporary visa holders in the Permanent Labor Certification process, says the U.S. Department of Justice.
The companies allegedly discouraged U.S. applicants by requiring paper mail submissions, airing late-night radio ads, and skipping public job postings for fewer than 10 positions. Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division says,
“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 settlement allocates $1.2 million in civil penalties to the government and $2 million into a fund for compensating affected workers.
OpenAI and Statsig must update hiring policies, provide staff training on immigration rules, and submit to three years of Justice Department monitoring with semiannual reports.
The firms deny any wrongdoing but agreed to the terms to avoid prolonged litigation and ensure future compliance with federal protections for domestic workers.
Statsig operates as a software development firm based in Bellevue, Washington, while OpenAI maintains its headquarters in San Francisco, California.
This resolution highlights ongoing federal scrutiny of tech companies’ use of visa sponsorship programs and their obligations to prioritize qualified U.S. candidates first.
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