Artificial intelligence company OpenAI and its subsidiary Statsig have agreed to pay $3.2 million to resolve federal allegations that they discriminated against U.S. workers in favor of temporary visa holders, according to the U.S. Department of Justice. The settlement addresses claims that the San Francisco-based AI giant and the Bellevue, Washington-based software development company shut out domestic applicants for software engineering and other roles.
OpenAI Reaches $3.2 Million Settlement With DOJ Over Visa Hiring Bias Claims
While OpenAI denied the government’s findings, it settled the matter to move forward with immigration support programs. According to a statement provided by the company, OpenAI stated it reached the agreement to resolve the issue and continue its PERM program, emphasizing that maintaining U.S. leadership in artificial intelligence requires retaining top talent globally and domestically.
Details of the Investigation and Recruitment Practices
The Justice Department’s investigation focused on fewer than 10 positions across OpenAI and Statsig. Specifically, six positions in areas including business operations and software engineering were scrutinized because the jobs were already held by visa holders whom the companies were sponsoring for permanent residence, or green cards.
Under the Permanent Labor Certification process, known as PERM, companies must advertise roles to domestic workers to certify that foreign employees are not displacing U.S. citizens. However, federal investigators alleged that OpenAI and Statsig engaged in practices designed to discourage U.S. workers from applying between June 2023 and at least April 2025.
The DOJ claimed the companies committed several violations during the recruitment process:
- Failing to post the targeted positions on their external jobs websites (Engadget).
- Requiring applicants to submit paper applications by mail, diverging from their standard electronic application process (Engadget).
- Advertising positions on the radio late at night (Engadget).
Assistant Attorney General Harmeet K. Dhillon noted that preferring temporary visa holders over U.S. workers is illegal. Dhillon stated that the settlement ensures OpenAI corrects its practices to give domestic workers fair access to technology positions ().
Financial Penalties and Back-Pay Fund Distribution
The $3.2 million financial agreement is divided into civil penalties and restitution for affected applicants. OpenAI will pay $1.2 million directly to the United States in civil penalties, while the remaining $2 million will establish a back-pay fund to compensate victims of the alleged discriminatory practices.
The DOJ clarified that the back-pay fund is designated specifically for individuals who applied for the positions but were not fairly considered, rather than people who missed out entirely due to the lack of standard job advertisements. The department plans to review applications submitted by U.S. workers who believe they faced discrimination to verify whether they were unfairly evaluated.
Mandatory Policy Changes and Industry Context
As part of the terms of the settlement agreement, OpenAI is required to alter its recruitment operations. The company must now publish its job openings on its public employment website, accept electronic applications for all listed roles, and only reject domestic workers for lawful, job-related reasons. Additionally, company staff must undergo training regarding the anti-discrimination provisions outlined in the Immigration and Nationality Act.
