DOJ Settles With OpenAI for $3.2 Million Over US Worker Discrimination Claims

By The Epoch Times | Created at 2026-08-05 11:16:59 | Updated at 2026-08-05 21:24:01 11 hours ago
DOJ Settles With OpenAI for $3.2 Million Over US Worker Discrimination Claims

A computer with the OpenAI logo is staged on a gradient blue background with the shadow of a man in the background in Grenoble in France, on Feb. 12, 2025. Anouk Anglade/Hans Lucas/AFP via Getty Images

The Department of Justice’s (DOJ’s) Civil Rights Division announced Tuesday that it had reached a $3.2 million settlement with OpenAI and a subsidiary over allegations that the companies discriminated against U.S. workers.

The San Francisco-based artificial intelligence company and its subsidiary Statsig Inc. allegedly violated the Immigration and Nationality Act by preferring workers with temporary employment visas. The alleged discrimination took place while the companies recruited through the Permanent Labor Certification (PERM) process.

“It is illegal to discriminate against U.S. workers by preferring temporary visa holders for jobs,” Assistant Attorney General Harmeet K. Dhillon of the DOJ’s Civil Rights Division said.

“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.”

OpenAI did not immediately return a request for comment.

The department’s investigation revealed OpenAI failed to advertise the PERM positions on its external job website, even though its standard practice was to do so with other jobs. The company also required applicants for those positions to mail paper applications, while accepting electronic submissions for non-PERM jobs.

In certain instances, the company advertised the openings on the radio late at night. Investigators said these steps represented a barrier that kept U.S. workers from applying.

Fewer than 10 positions were the focus of the investigation. Department officials said the

settlement

amount reflects the broader damage when American workers are kept out of high-paying technology jobs.

OpenAI will pay $1.2 million in civil penalties to the United States and create a $2 million back-pay fund to compensate workers affected by the practices.

The company must also post future PERM-related openings on its public career website, allow electronic applications for those roles in the same manner as other jobs, train relevant staff on the anti-discrimination rules, revise its employment policies, and submit to departmental monitoring and reporting.

The PERM program lets employers sponsor foreign workers for permanent resident status, but only after conducting good-faith recruitment and determining that no qualified U.S. workers are available. Federal law prohibits discrimination against U.S. workers based on citizenship status during that process.

The settlement is the 13th reached since the department restarted its Protecting U.S. Workers Initiative in 2025.

That effort targets companies accused of favoring temporary visa holders over U.S. workers.

Officials said the department will continue seeking the maximum civil penalties allowed by law and, when appropriate, back pay for affected workers. Settlements under the initiative also typically require training and policy changes to stop citizenship-based restrictions on job opportunities that lack a lawful basis.

The settlement agreement itself states that OpenAI denies the allegations and that the payment and other terms are not an admission of any violation or liability.

The parties agreed to the deal to resolve the investigations without further delay or expense. The agreement lasts for three years and includes detailed requirements for how the companies must handle future PERM recruitment, including unique identifiers for postings, electronic application options, and good-faith review of U.S. worker applicants.

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