OpenAI and DOJ Reach $3.2 Million Settlement Over Job Discrimination

OpenAI has agreed to a $3.2 million settlement with the Trump administration following allegations of discrimination against American workers. The company was found to have favored foreign workers with temporary employment visas while recruiting for jobs linked to the employment-based immigration process.

Last year, Newsweek reported how technology firms advertised green card-related positions that were often difficult for U.S. job seekers to find. The Department of Justice (DOJ) Civil Rights Division announced the settlement on Tuesday, resolving claims against OpenAI and its subsidiary Statsig. The accusations centered on favoritism toward foreign workers during recruitment conducted through the Permanent Labor Certification (PERM) process.

OpenAI’s Recruitment Practices

The PERM system allows employers to sponsor workers for permanent residency, typically H-1B visa holders, if they first make a good-faith effort to recruit qualified U.S. workers. Federal investigators found that OpenAI’s recruitment practices did not meet this standard. The company did not consistently advertise PERM-related jobs on its public careers website, required applicants to submit paper applications instead of electronic ones, and sometimes advertised openings through late-night radio spots. The DOJ stated these practices discouraged U.S. workers from applying for these positions.

It is illegal to discriminate against U.S. workers by preferring temporary visa holders for jobs, said Assistant Attorney General Harmeet K. Dhillon.

Financial Commitments and Procedural Changes

Under the settlement, OpenAI will pay $1.2 million in civil penalties and establish a $2 million backpay fund for workers allegedly harmed by these recruitment practices. The company will modify its hiring procedures by advertising PERM positions on its public site, accepting electronic applications, revising employment policies, and providing training on anti-discrimination requirements. OpenAI will also submit to federal monitoring and reporting provisions.

OpenAI denies any wrongdoing and does not admit to violating federal law. The investigations began in August 2025, with investigators citing reasonable cause to believe OpenAI discriminated based on citizenship status in several PERM advertisements dating back to at least 2023.

OpenAI’s Response

An OpenAI spokesperson expressed disagreement with the DOJ’s conclusions but opted to resolve the issue to focus on their mission. OpenAI’s mission is to ensure that AGI [artificial general intelligence] benefits all of humanity. Fulfilling our mission while maintaining America’s AI leadership requires attracting the best talent globally, the spokesperson commented.

The spokesperson emphasized that while OpenAI disagrees with the findings, they chose to reach this agreement to move forward with their PERM program, crucial for employees needing immigration support.

Role of Newsweek’s Reporting

The settlement follows a Newsweek investigation that looked into the recruitment practices of companies seeking green cards through the PERM process. These methods often made job openings hard to find for ordinary applicants. Newsweek’s report in August 2025 highlighted the use of outdated recruitment advertising, including by OpenAI, to fulfill legal requirements, while potentially intending to sponsor foreign workers for permanent residency.

The DOJ’s investigation began after Newsweek contacted the department about job postings OpenAI shared, coinciding with the same timeframe.

Impact and Outlook

The settlement is among the most prominent actions taken by the Trump administration’s DOJ regarding employment practices and foreign-worker sponsorship programs. Federal officials noted fewer than ten positions were directly involved, but emphasized the settlement’s size as reflective of the broader harm when qualified U.S. workers are unable to compete for well-compensated tech jobs.

This case arises amid a wider national debate on the role of H-1B visa holders and employment-based immigration in technology. Proponents argue the need for global talent to maintain U.S. leadership in fields like artificial intelligence, while critics claim some employers use immigration routes disadvantageously toward American workers.

OpenAI aims to resolve the dispute to continue its immigration sponsorship programs under the agreement’s conditions. The settlement will endure for three years, during which OpenAI and Statsig will be under DOJ scrutiny to ensure adherence to federal anti-discrimination laws concerning recruitment linked to the PERM process.