OpenAI Settles with DOJ Over Discrimination Claims

OpenAI has entered into a $3.2 million settlement with the Trump administration. The settlement comes after allegations of discrimination against American workers during recruitment for jobs connected to the employment-based immigration process.

Background of the Case

Newsweek previously reported that some tech companies had made it challenging for U.S. job seekers to find positions involving green card sponsorship. The Department of Justice’s (DOJ) Civil Rights Division has resolved claims that OpenAI and its subsidiary Statsig favored temporary visa holders during the Permanent Labor Certification (PERM) recruitment process. The PERM system allows employers to sponsor workers for permanent residency by demonstrating a good-faith effort to hire qualified U.S. workers.

Federal investigators found that OpenAI’s recruiting practices discouraged U.S. workers from applying. This included not advertising some jobs on its public careers website and requiring paper applications instead of electronic submissions.

Settlement Details

Assistant Attorney General Harmeet K. Dhillon stated that it is illegal to discriminate against U.S. workers by preferring temporary visa holders. Under the settlement terms, OpenAI will pay $1.2 million in civil fines and establish a $2 million fund for backpay to affected workers. The company will also change its hiring practices and policies to encourage more U.S. worker participation.

Although OpenAI denies wrongdoing, the agreement settles investigations that started in August 2025. These investigations concluded that OpenAI engaged in citizenship-status discrimination as far back as 2023.

Response from OpenAI

An OpenAI spokesperson explained that the company disagreed with the DOJ’s findings but resolved the matter to move forward with their PERM program. OpenAI claims its mission involves ensuring AGI benefits for all humanity, requiring talent from both the U.S. and abroad.

Newsweek’s Investigation

The settlement follows a Newsweek investigation examining employment practices related to the PERM process. The investigation uncovered how some employers placed recruitment ads in outdated venues, inadvertently excluding many job seekers. The DOJ’s investigation began concurrently with Newsweek’s inquiries into OpenAI’s recruiting actions.

According to Jobs Now, an organization monitoring H-1B abuses, fines are insufficient to deter violations by big tech companies. Despite previous settlements with other tech giants like Facebook and Apple, these practices continue.

Why the Case Matters

The case highlights growing attention from the Justice Department on employment practices related to foreign-worker sponsorships. While involving fewer than ten jobs, the settlement’s size points to broader issues preventing qualified U.S. workers from competing in high-paying technology fields.

There is ongoing debate over H-1B visa holders’ roles in the tech industry. Supporters say global talent access is necessary for U.S. leadership in fields like AI, while critics argue immigration pathways often disadvantage American workers.

Future Steps

The settlement requires OpenAI and Statsig to comply with DOJ monitoring for three years. This monitoring aims to ensure adherence to federal anti-discrimination laws related to the PERM process.