OpenAI Agrees to $3.2 Million Settlement Over Worker Discrimination Claims

Tech company OpenAI has agreed to a $3.2 million settlement with the Trump administration. This comes after findings of discrimination against American workers during recruitment connected to the employment-based immigration process. The Department of Justice (DOJ) Civil Rights Division announced the settlement on Tuesday. It resolves claims that both OpenAI and its subsidiary Statsig preferred foreign workers with temporary employment visas over U.S. workers in their recruitment through the Permanent Labor Certification (PERM) process.

The PERM process allows employers to sponsor workers for permanent residency if they make a genuine effort to hire qualified U.S. workers. This often involves H-1B visa holders. Federal investigators found that OpenAI did not list some PERM jobs on its public careers website, required paper applications instead of electronic ones, and even advertised jobs through late-night radio. These practices deterred U.S. workers from applying for roles linked to the PERM process.

OpenAI’s Obligations Under the Settlement

Under the settlement, OpenAI will pay $1.2 million in civil penalties. A $2 million backpay fund will also be created for workers affected by the identified recruitment practices. The company has agreed to alter its hiring practices, ensure public advertising of PERM roles, accept electronic applications, revise employment policies, and train staff on anti-discrimination requirements related to immigration. Federal monitoring and reporting provisions are also part of the agreement. The company denies any wrongdoing and does not admit to violating federal law.

The investigations began in August 2025, uncovering alleged citizenship-status discrimination in several PERM advertisements dating back to 2023. Despite disagreeing with the DOJ’s findings, OpenAI decided to settle to move forward with its PERM program. The company asserts its mission is to use AGI (artificial general intelligence) to benefit all humanity, requiring the best talent from the U.S. and globally.

Connection to Newsweek’s Reporting

This settlement follows Newsweek’s reports on how some tech companies advertised green card-related roles in ways difficult for U.S. job seekers. The August 2025 article highlighted issues with recruitment advertisements in venues overlooked by modern job seekers. Newsweek’s investigation pointed out that employers seemed to conduct recruitment while intending to sponsor selected foreign workers for permanent residence. The DOJ’s investigation into OpenAI started after Newsweek’s inquiries.

A spokesperson from Jobs Now, which aims to uncover H-1B PERM process abuses, expressed satisfaction with the DOJ’s action. They noted concerns about OpenAI’s use of paper applications within its global mobility department, typically engaged in immigration rather than hiring, and urged users to apply for such roles. The DOJ’s allegations reflected these concerns, focusing on whether U.S. workers had real opportunities to compete for positions before foreign sponsorship.

Implications of the Settlement

The settlement is significant among actions by the Trump administration’s Justice Department, increasing scrutiny on foreign-worker sponsorship. Federal officials noted that fewer than 10 positions were directly implicated. However, they emphasized the settlement’s importance due to its broader impact on preventing qualified U.S. workers from competing for lucrative tech jobs. The case also ties into a larger national debate regarding H-1B visas and employment-based immigration in technology.

The settlement will be in effect for three years, with OpenAI and Statsig undergoing DOJ monitoring and reporting to ensure compliance. This period aims to secure adherence to federal anti-discrimination laws regarding recruitment related to the PERM process.