OpenAI Agrees to $3.2 Million Settlement Over US Hiring Discrimination Claims

OpenAI and one of its subsidiaries have agreed to pay $3.2 million to settle allegations by the US government that they discriminated against American job applicants while favouring foreign workers holding temporary employment visas. The settlement marks one of the highest-profile cases brought by the US Justice Department over alleged hiring discrimination and requires the companies to change their recruitment practices.

The US Justice Department announced the settlement on Tuesday, saying OpenAI and Statsig, a subsidiary that develops product development software, engaged in recruitment practices that discouraged qualified US workers from applying for certain positions.

Justice Department Alleges Discriminatory Hiring Practices

According to the Justice Department, the companies recruited foreign workers for some vacancies while introducing barriers that made it more difficult for US applicants to compete for those roles.

The department alleged that applicants were required to submit paper applications by post instead of using electronic systems. It also said some vacancies were advertised on radio broadcasts late at night and were not posted on external job websites, limiting their visibility to potential US candidates.

OpenAI did not immediately respond to a request for comment. However, the company denied any wrongdoing as part of the settlement agreement.

Settlement Includes Penalties and Compensation

The Justice Department said the companies will pay a total of $3.2 million to resolve the allegations.

The settlement includes $1.2 million in civil penalties and $2 million to compensate individuals identified as alleged victims of discrimination.

Although the department said fewer than 10 job openings were involved, it stated that the financial settlement reflected the harm the alleged conduct caused to US workers.

In addition to the monetary payment, OpenAI agreed to revise its employment policies, provide staff training and remain subject to monitoring by the Justice Department.

Immigration Law at the Centre of the Case

Federal prosecutors alleged that OpenAI and Statsig violated the Immigration and Nationality Act, which prohibits discrimination based on citizenship during recruitment and hiring.

Assistant Attorney General Harmeet Dhillon said the agreement would ensure the company addressed the alleged harm and implemented changes designed to provide US workers with fair access to highly sought-after technology jobs.

The Justice Department has announced at least a dozen similar settlements since last year involving allegations that employers discriminated against American workers. Most of those cases involved technology companies, although none attracted as much attention as the action against OpenAI.

Broader Debate Over Temporary Work Visas

The settlement comes amid continued debate in the United States over the use of temporary employment visas in the technology sector.

President Donald Trump has argued that some companies misuse temporary work visa programmes and has sought to reduce reliance on foreign workers. His administration introduced a $100,000 fee on new H-1B visas for highly skilled employees, although that measure has been blocked while legal challenges continue.

The latest settlement adds to growing scrutiny of recruitment practices in the technology industry as federal authorities continue enforcing laws intended to ensure equal employment opportunities for US workers.

With inputs from Reuters