San Francisco-based OpenAI OpCo LLC and its Bellevue, Washington-based subsidiary, Statsig Inc., have agreed to pay $3.2 million to resolve allegations that they violated the Immigration and Nationality Act (INA) by favoring temporary visa holders over U.S. workers during the recruitment process.
The Justice Department’s Civil Rights Division announced the settlement following an investigation into the companies’ practices during the Permanent Labor Certification (PERM) process. Under the PERM program, employers can sponsor foreign workers for permanent residency only after conducting good-faith recruitment that fails to find qualified U.S. workers.
According to federal investigators, OpenAI failed to advertise PERM positions on its public job board, contrary to its standard practice for other roles.
The company required applicants for these positions to mail paper applications rather than apply electronically, and took steps to discourage applicants, such as running late-night radio advertisements. The investigation noted that fewer than ten positions were involved.
“It is illegal to discriminate against U.S. workers by preferring temporary visa holders for jobs,” said Assistant Attorney General Harmeet K. Dhillon of the Civil Rights Division. “This substantial settlement ensures that OpenAI redresses harm and changes its recruitment practices so that U.S. workers receive a fair opportunity for highly sought-after technology positions.”
The agreement requires OpenAI to pay $1,200,000 in civil penalties to the U.S. government and set up a $2,000,000 back-pay fund for affected job seekers. The company must also post all PERM recruitment positions on its public career site, accept electronic applications, update its hiring policies, train employees on INA requirements, and submit to monitoring by the Justice Department.
This case marks the thirteenth settlement finalized under the Justice Department’s Protecting U.S. Workers Initiative since its relaunch in 2025.
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