The Department of Justice announced Tuesday that artificial intelligence firm OpenAI and its subsidiary Statsig have reached a $3.2 million settlement over charges the companies illegally discriminated against American workers. The case centers on hiring practices that gave preference to temporary visa holders for lucrative technology positions, shutting out qualified U.S. applicants.
Systematic Exclusion of Domestic Talent
Federal investigators found reasonable cause to believe the companies manipulated the Permanent Labor Certification (PERM) process. This program allows firms to sponsor foreign workers for permanent status only after a good-faith effort fails to find a qualified American. Instead, the DOJ stated, OpenAI erected barriers that made it difficult for U.S. workers to apply. The company required paper applications mailed by hand for positions it intended to fill through PERM recruitment, while typically accepting standard electronic submissions for other roles. It also failed to advertise jobs on required external sites.
Assistant Attorney General Harmeet K. Dhillon stated unequivocally, “It is illegal to discriminate against U.S. workers by preferring temporary visa holders for jobs.” While fewer than ten positions were at issue, the financial penalty accounts for the significant harm caused when domestic workers are locked out of high-wage roles in a strategic industry.
Settlement Puts American Workers First
Of the total sum, $1.2 million constitutes civil penalties paid to the U.S. Treasury. A further $2 million will establish a fund to compensate workers harmed by the discriminatory practices. OpenAI, which disputes the DOJ's findings, stated it settled to move forward with immigration support programs. The action aligns with a broader administration push to enforce immigration laws and protect the domestic labor force against corporate schemes that bypass American talent to reduce labor costs.
The settlement underscores that maintaining American preeminence in artificial intelligence cannot come at the expense of the American worker. National security and economic strength in this critical sector depend on developing domestic human capital, not outsourcing opportunity through manipulated visa programs.