OpenAI Pays $3.2 Million

OpenAI will pay $3.2 million to settle US government claims that it favored foreign workers with temporary employment visas and discriminated against US job applicants in recruiting and hiring [1]. The settlement, which includes $1.2 million in penalties and $2 million to compensate alleged victims of discrimination, reflects the harm OpenAI's conduct caused to US workers, despite involving fewer than 10 positions [2].

What drove the move

The Justice Department alleged that OpenAI and its subsidiary, Statsig, recruited foreign workers for some open positions and took various steps to discourage US workers from applying, including requiring paper applications and advertising jobs on late-night radio [3]. The companies denied wrongdoing in the settlement agreement, but agreed to revise their employment policies, conduct training, and be subject to monitoring by the Justice Department [1]. The settlement is the thirteenth since the Justice Department relaunched its Protecting U.S. Workers Initiative in 2025 [2].

The competitive picture

The OpenAI settlement arrives as federal officials scrutinize similar recruitment systems at Bay Area technology companies [2]. The Justice Department has announced at least a dozen other settlements since last year in cases involving alleged discrimination against US workers, mostly by tech companies [1]. President Donald Trump has said that many companies abuse the temporary employment visa system and has sought to limit the hiring of foreign workers [3].

The following table compares the settlement amount to other recent settlements:

What to watch

• The Justice Department's review of applicants and their qualifications to determine eligibility for compensation from the $2 million fund [2]
• OpenAI's implementation of revised employment policies and training for employees, recruiters, contractors, and agents involved in PERM recruitment [1]
• The outcome of other ongoing investigations into alleged discrimination against US workers by tech companies [2]

The settlement reflects the harm OpenAI's conduct caused to US workers and ensures that the company changes its recruitment practices to give US workers a fair opportunity for highly sought-after technology positions [1]. The outcome of this case and others like it will be closely watched as the Justice Department continues to scrutinize recruitment practices in the tech industry.