OpenAI Agrees to $3.2 Million Settlement Over US Hiring Discrimination Claims

OpenAI Agrees to $3.2 Million Settlement Over US Hiring Discrimination Claims

August 5, 2026
By Mintesinot Nigussie

OpenAI has agreed to pay 3.2 million US dollars to resolve allegations that it disadvantaged US workers during recruitment for positions linked to a federal programme for foreign workers seeking permanent residency. The settlement, announced by the US Department of Justice's Civil Rights Division, includes a 1.2 million US dollar civil penalty paid to the government and a 2 million US dollar fund to compensate workers affected by the alleged practices.

The Justice Department said OpenAI and its subsidiary, Statsig, violated the Immigration and Nationality Act by favouring workers holding temporary employment visas during recruitment under the Permanent Labor Certification (PERM) process. The PERM programme allows companies to sponsor foreign workers for permanent residency after demonstrating that they cannot find qualified US workers for specific roles. However, employers are prohibited from discouraging US applicants or giving preference to temporary visa holders during the recruitment process.

According to the department's investigation, OpenAI did not publish PERM-related job openings on its public careers website, despite routinely advertising other positions there. The company also required paper applications for some PERM positions while accepting online applications for other roles. The Justice Department said OpenAI used additional recruitment methods, including late-night radio advertisements, that limited visibility of the positions among US workers.

Although fewer than 10 PERM positions were involved, officials said the settlement amount reflected the impact of excluding US workers from opportunities in highly paid technology roles. Under the agreement, OpenAI will change its recruitment procedures by publicly posting PERM-related positions, accepting electronic applications, updating employment policies and training staff on anti-discrimination requirements. The company will also be subject to monitoring and reporting requirements from the Justice Department to ensure compliance.

Assistant Attorney General Harmeet K. Dhillon of the Civil Rights Division said the settlement would ensure US workers receive equal access to technology employment opportunities. The agreement is the thirteenth settlement reached since the Justice Department restarted its Protecting US Workers Initiative in 2025, which targets employers accused of unlawfully favouring foreign visa holders over US workers during recruitment.

Source: FSX Business News