OpenAI pays $3.2 million to settle DOJ hiring discrimination claims

OpenAI will pay $3.2 million to settle Justice Department claims it discriminated against U.S. workers by favoring temporary visa holders, the largest settlement under a revived federal enforcement initiative targeting tech hiring practices.

"It is illegal to discriminate against U.S. workers by preferring temporary visa holders for jobs," Harmeet K. Dhillon, assistant attorney general for the DOJ's Civil Rights Division, said in a statement. "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 DOJ alleged OpenAI and its subsidiary Statsig, a Bellevue, Washington-based software development firm, discouraged American applicants for positions filled through the Permanent Labor Certification program by failing to post jobs on its external career website, requiring paper mail applications instead of electronic submissions, and airing radio advertisements late at night. Fewer than 10 positions were at issue, the DOJ said, but "the resolution amount reflects the harm to U.S. workers when they are shut out of applying for lucrative technology jobs."

The settlement comes as the Trump administration escalates efforts to restrict foreign worker access to the U.S. labor market. The administration proposed a $100,000 fee on new H-1B visas last year — up from roughly $5,000 — which was blocked by an appeals court in June. It is now considering attaching a similar $100,000 price tag to international students' ability to work in the U.S. after graduation, a move that would reshape the pipeline of tech talent entering the country.

OpenAI will pay $1.2 million in civil penalties and establish a $2 million back-pay fund to compensate victims of the alleged discriminatory practices. The company also agreed to post PERM positions on its public career website, accept electronic applications, revise employment policies, and train personnel on anti-discrimination requirements.

The company disputed the DOJ's findings. "OpenAI's mission is to ensure that AGI benefits all of humanity," a spokesperson said. "Fulfilling that mission and maintaining America's leadership in AI requires attracting and retaining the best talent from the United States and around the world. 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 allows employers to sponsor foreign workers for permanent resident status, provided no qualified U.S. worker is available for the position. Companies cannot use the program to discriminate against American workers, the DOJ said.

Enforcement Wave Targets Tech Hiring

The OpenAI settlement is the largest of 13 the DOJ has negotiated under its Protecting U.S. Workers Initiative, which was re-launched in 2025 after being deprioritized during the Biden administration. Eleven companies have settled this year, most of them technology firms fined in the tens of thousands of dollars.

The enforcement push extends beyond the DOJ. The Equal Employment Opportunity Commission has made discrimination against U.S. workers an enforcement priority under chair Andrea Lucas, including suing a construction company over allegations that American workers were harassed for not speaking Spanish fluently.

The broader crackdown carries significant implications for the tech sector, where foreign-born talent is deeply embedded. According to the 2025 Silicon Valley Index from Joint Venture Silicon Valley, 65 percent of technology workers in the San Francisco Bay Area are foreign born. Forbes reports that nearly two-thirds of the top AI companies in the U.S. were founded or co-founded by immigrants. Statsig's founder, Vijaye Raji, a former Meta and Microsoft executive, came to the U.S. on an H-1B visa after being born and educated in India.

The financial impact of the settlement is minimal for OpenAI, which has raised billions in funding and is valued in the hundreds of billions. But the DOJ's action shows that companies using the PERM program must demonstrate good-faith recruitment of U.S. workers, or face penalties that escalate with each violation.

For the broader tech labor market, the combination of DOJ enforcement and the administration's proposed visa fee increases could reshape hiring strategies. Companies that rely heavily on foreign talent may need to invest more in domestic recruitment infrastructure, while the proposed $100,000 fee on international students' post-graduation work authorization could reduce the flow of skilled workers entering the U.S. pipeline.

This article is for informational purposes only and does not constitute investment advice.