OpenAI and its subsidiary Statsig have agreed to a $3.2 million settlement to resolve claims by the U.S. Department of Justice that the companies favored foreign workers holding temporary employment visas and discriminated against U.S. job applicants in their recruiting and hiring practices, the Justice Department said on Tuesday.
In a department release, prosecutors said the companies recruited foreign workers for some open roles and adopted several measures that had the effect of discouraging U.S. applicants. The Justice Department listed examples of those measures, including requirements that U.S. applicants mail paper applications rather than submit them electronically, advertising positions on radio late at night, and failing to post openings on an external website.
The settlement resolves allegations that OpenAI and Statsig violated the federal Immigration and Nationality Act, which prohibits discrimination based on citizenship. While the department said fewer than 10 positions were at issue, it characterized the settlement amount as reflecting the harm caused to U.S. workers.
Under the agreement, the total payout is $3.2 million, comprising $1.2 million in penalties and $2 million to compensate alleged victims of discrimination. The Justice Department said OpenAI will also revise employment policies, provide training, and be subject to monitoring by the agency.
OpenAI denied wrongdoing in the settlement agreement. The company did not immediately respond to a request for comment, according to the Justice Department release. Assistant Attorney General Harmeet Dhillon was quoted as saying that the settlement is substantial and will ensure that OpenAI redresses harm and changes recruitment practices so that U.S. workers receive a fair opportunity for technology positions.
The Justice Department said it has announced at least a dozen other settlements since last year in cases involving alleged discrimination against U.S. workers, most involving technology companies, though none matched the profile of the OpenAI case.
The announcement comes amid broader debate over the temporary employment visa system. The release noted recent actions by President Donald Trump, who has said many companies abuse the temporary visa system and has sought measures to limit hiring of foreign workers. One such measure cited in the department release is a $100,000 fee on new H-1B visas for highly skilled workers; that fee has been blocked pending legal challenges, the department said.
This settlement closes the specific enforcement action described by the Justice Department while imposing monetary penalties, victim compensation, and compliance measures intended to change how OpenAI and its subsidiary approach recruitment for highly sought technology roles.