OpenAI to Pay $3.2 Million to Settle DOJ Hiring Discrimination Claims
The AI giant will fund back-pay for US workers after the Department of Justice found it favored foreign visa holders through restrictive hiring tactics.
OpenAI and its subsidiary, Statsig Inc., have reached a $3.2 million settlement with the US Department of Justice to resolve allegations that the companies discriminated against domestic workers. The agreement follows a federal investigation into claims that the firms prioritized foreign workers with temporary employment visas over qualified US applicants.
According to the DOJ, the settlement includes $1.2 million in civil penalties paid to the US government and $2 million dedicated to a back-pay fund for affected applicants. The Department of Justice alleged that the companies discriminated against US workers and instead preferred workers with temporary employment visas during their recruitment and hiring processes.
Obstructive Hiring Tactics
Federal investigators found that OpenAI intentionally created barriers to discourage US citizens from applying for open roles. The DOJ alleged that the company avoided advertising certain positions on its external jobs website. Instead, it employed restrictive and antiquated application methods, such as requiring candidates to submit paper applications and placing job advertisements on the radio late at night to minimize visibility to the domestic workforce.
To resolve these claims, OpenAI must now overhaul its recruitment pipeline. The company is required to post all job openings on its public website and accept electronic applications. Additionally, the firm must provide staff training on the anti-discrimination policies mandated by the Immigration and Nationality Act (INA).
Industry-Wide Scrutiny
This case is part of a broader regulatory crackdown on how tech firms utilize employment-based immigration. Companies seeking to hire foreign workers typically undergo Permanent Labor Certification to ensure that foreign talent does not displace US citizens. However, the DOJ has increasingly targeted Silicon Valley firms for under-advertising roles to bypass this requirement. Similar enforcement actions include a multi-million dollar settlement with Meta in 2021 and a $25 million agreement with Apple in 2023.
Implications for AI Talent
The settlement underscores the increasing legal scrutiny facing major AI firms as they compete for specialized talent. By penalizing the intentional creation of hiring barriers, the US government is signaling that the demand for AI expertise does not exempt companies from domestic labor laws. The move ensures that the rapid growth of the AI sector remains transparent and accessible to the US workforce.
What's Next
The settlement was officially announced on August 4, 2026. Observers will now monitor OpenAI's compliance with the new public posting requirements and the distribution of the $2 million back-pay fund to the victims of the discriminatory hiring practices.