On Tuesday (local time), the U.S. Department of Justice disclosed that OpenAI had agreed to pay $3.2 million to resolve allegations of discriminatory hiring practices. The investigation revealed that OpenAI failed to publicly advertise job openings for specific roles and instead directly targeted foreign candidates for recruitment. Moreover, the company adopted strategies such as posting job listings late at night and insisting on paper applications to deter U.S. job seekers from applying.
As per the settlement terms, OpenAI is obligated to pay a $1.2 million civil penalty and establish a $2 million compensation fund to reimburse affected individuals. Simultaneously, OpenAI must revamp its recruitment process, provide training on immigration law, and submit to oversight. Despite OpenAI's disagreement with the investigation's findings, both parties reached a consensus to facilitate the PERM program.
This settlement represents the 13th case since the U.S. Department of Justice reinstated its enforcement initiative against employment discrimination based on citizenship in 2025. Although the case involved fewer than 10 positions, it was vigorously pursued due to the substantial harm inflicted by excluding U.S. workers from lucrative tech roles.