OpenAI is handing over $3.2 million to settle federal allegations that it favored foreign workers on temporary visas ahead of American job seekers.
The company and its subsidiary, Statsig Inc, reached the agreement with the Justice Department after investigators uncovered recruitment tactics that limited opportunities for US citizens, reports Politico.
Officials allege that certain roles went unadvertised on public websites while late-night postings and paper-only applications deterred US candidates during the recruitment process.
The settlement requires a $1.2 million civil penalty payment plus a $2 million fund for back pay to compensate “victims of the companies’ discriminatory practices,” along with mandatory training and ongoing oversight of hiring practices.
A spokesperson for OpenAI says global recruitment remains essential to its goals yet consented to the resolution to advance its immigration support efforts without further legal dispute.
“While we disagree with the DOJ’s findings, we reached this agreement to resolve the matter and move forward with our PERM program, which is critical for employees and candidates requiring immigration support.”
The PERM program gives employers a pathway to sponsor foreign workers for permanent residency when they are unable to find qualified US workers after completing a good-faith recruitment process.
Even so, federal rules prohibit employers from favoring foreign workers over qualified US applicants or discriminating against American workers based on their citizenship during the hiring process.
The probe examined fewer than ten positions and represents the 13th enforcement action under a revived Justice Department program targeting citizenship discrimination in employment.
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