OpenAI and Statsig to Pay $3.2 Million to Settle Discrimination Claims

OpenAI and a subsidiary, Statsig, will pay $3.2 million to settle allegations from the US government that they favored foreign workers with temporary employment visas and discriminated against US job applicants during recruitment and hiring processes.

Department of Justice Details Allegations

The Justice Department (DoJ) stated that OpenAI and Statsig actively recruited foreign workers for open positions while taking steps to discourage US workers from applying. These tactics included requiring paper applications instead of electronic submissions, advertising jobs late at night on the radio, and omitting job postings from external websites.

Company Response and Settlement Terms

OpenAI denied wrongdoing in the settlement agreement, though the DoJ alleges violations of the federal Immigration and Nationality Act, which prohibits discrimination based on citizenship. The settlement includes $1.2 million in penalties and $2 million to compensate alleged victims of discrimination. Furthermore, OpenAI agreed to revise its employment policies, conduct training, and be subject to monitoring by the Justice Department.

Trump Administration’s Focus on Visa System

This settlement follows at least a dozen other similar cases announced by the DoJ since last year, primarily involving tech companies. Donald Trump has repeatedly criticized companies for allegedly abusing the temporary employment visa system and has sought to limit the hiring of foreign workers, including implementing a $100,000 fee for new H-1B visas.

Assistant Attorney General Statement

Assistant Attorney General Harmeet Dhillon stated that the settlement “ensures that OpenAI redresses harm and changes its recruitment practices so US workers receive a fair opportunity for highly sought-after technology positions.”