OpenAI Settles US Hiring Discrimination Lawsuit for $3.2 Million
OpenAI has agreed to a $3.2 million settlement with the US Department of Justice to resolve allegations that it discriminated against US citizens by favoring foreign workers on temporary visas. The settlement includes a $1.2 million civil penalty and a $2 million compensation fund for affected applicants. This case highlights the US government's increased scrutiny of tech companies' hiring practices, specifically targeting the misuse of immigration sponsorship programs to bypass local talent. It underscores the legal risks tech firms face when trying to secure specialized global talent through non-standard recruitment methods. The DOJ found that OpenAI and its partner Statsig Inc. discouraged US applicants by posting jobs late at night and requiring paper-only applications. Although the investigation involved fewer than 10 positions, OpenAI must now reform its hiring processes, train staff on immigration law, and undergo regular compliance monitoring.
## BACKGROUND
Under US immigration law, employers seeking to sponsor foreign workers for permanent residency (green cards) must go through the PERM (Program Electronic Review Management) labor certification process. This process requires companies to conduct a good-faith recruitment search to prove that there are no qualified and willing US workers available for the position before hiring a foreign national.