OpenAI Settles for $3.2 Million Over Claims of Favoring Foreign Workers

Tech giant OpenAI and its subsidiary, Statsig Inc., are set to pay a hefty $3.2 million to the U.S. Department of Justice (DOJ) to resolve allegations that they systematically favored foreign workers over American job seekers. The landmark settlement, announced Tuesday, addresses claims that the companies engaged in discriminatory hiring practices, particularly concerning the Permanent Labor Certification (PERM) process, effectively making it harder for U.S. citizens to secure highly sought-after technology roles. The DOJ's Immigrant and Employee Rights Section (IER) found that OpenAI and Statsig allegedly bypassed standard recruitment methods for PERM-related positions, such as failing to advertise jobs on their public career websites and requiring outdated paper applications for roles that otherwise accepted digital submissions. This investigation marks the 13th settlement under the DOJ's 'Protecting U.S. Workers Initiative' since 2025, highlighting an intensified federal crackdown on alleged visa program abuses, especially within the tech sector. This scrutiny is further amplified by the Trump administration broader push to limit foreign worker hiring, including a contested $100,000 fee on new H-1B visas. As part of the agreement, OpenAI will pay $1.2 million in civil penalties and establish a $2 million back-pay fund to compensate affected U.S. workers. Beyond the financial penalties, the company must also overhaul its recruitment processes, publicly advertise all PERM positions, accept electronic applications, and implement comprehensive anti-discrimination training for its staff, all while being subject to ongoing DOJ monitoring. While OpenAI denies the allegations, the settlement signals a clear federal message to the tech industry about accountability in employment practices.