Settlement Announcement and Details
OpenAI has agreed to a $3.2 million settlement with the Trump administration. The action follows claims of discrimination against American workers during the hiring process. Details were made public by the Department of Justice (DOJ) Civil Rights Division.
The settlement resolves claims that OpenAI, along with its subsidiary Statsig, favored foreign workers with temporary employment visas. This preference occurred during recruitment through the Permanent Labor Certification (PERM) process. The PERM system sponsors workers for permanent residency if they make a good-faith effort to recruit qualified U.S. workers first.
Investigators found that OpenAI failed to publicly advertise some PERM-related jobs. The company also required paper applications and limited advertisements to late-night radio spots. The DOJ concluded these practices discouraged U.S. workers from applying.
Assistant Attorney General Harmeet K. Dhillon stated, “It is illegal to discriminate against U.S. workers by preferring temporary visa holders for jobs.”
Financial Implications and Changes
OpenAI will pay $1.2 million in civil penalties and create a $2 million backpay fund. The fund is for workers harmed by the recruitment practices uncovered by investigators.
The company will also adjust its hiring practices. Changes include posting PERM positions on its public careers site and accepting electronic applications. OpenAI will revise its employment policies and train staff on anti-discrimination requirements. The company will also comply with federal monitoring and reporting provisions. OpenAI denies any wrongdoing or violation of federal law.
Background and OpenAI’s Response
The DOJ began investigations in August 2025, finding discrimination linked to several PERM job advertisements dating back to 2023. OpenAI disputes the government’s findings but chose to settle to resolve the matter. A spokesperson stated, “OpenAI’s mission is to ensure that AGI benefits all of humanity. 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.”
The spokesperson further mentioned, “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.”
Connection to Newsweek’s Reporting
The settlement follows a Newsweek report examining recruitment practices linked to PERM. The August 2025 article described how employers used obscure recruitment methods. OpenAI was one of the companies mentioned. According to the report, the practice can disadvantage U.S. workers when employers seem focused on sponsoring specific foreign workers.
Jobs Now, a website investigating potential PERM abuses, expressed satisfaction with the DOJ’s action. A spokesperson said, “We were deeply concerned last year when we saw OpenAI advertising for job applicants to use paper mail to submit their resumes.”
The DOJ’s allegations matched findings that U.S. workers were denied fair opportunities to compete for certain positions.
Impact and Broader Context
The settlement is a significant action by the Trump administration’s DOJ. It highlights scrutiny of employment practices involving foreign-worker sponsorship programs. Although fewer than 10 positions were at issue, officials stated the settlement size reflects broader harm.
The case is part of a broader discussion about H-1B visa holders and employment-based immigration in technology. Advocates argue that access to global talent is crucial, while critics claim immigration pathways may disadvantage American workers.
The settlement ensures that OpenAI can continue its immigration sponsorship programs under the agreement’s terms.
Monitoring and Compliance
The settlement will be in effect for three years. During this time, OpenAI and Statsig must adhere to DOJ monitoring and reporting requirements. These measures aim to ensure compliance with federal anti-discrimination laws associated with the PERM process.