DOJ Settles Discrimination Case Against OpenAI
On Tuesday, Assistant Attorney General Harmeet K. Dhillon from the Justice Department’s Civil Rights Division unveiled a settlement agreement with OpenAI, an artificial intelligence firm, for its discriminatory hiring practices against American workers.
This development marks a continuation of the Trump administration’s legal pursuits aimed at companies favoring immigrant hiring at the expense of U.S. citizens.
According to the Justice Department:
The Civil Rights Division of the Justice Department disclosed that it has secured a settlement totaling $3,200,000 with OpenAI OpCo LLC, located in San Francisco, California, and its subsidiary, Statsig Inc., situated in Bellevue, Washington.
This settlement addresses accusations that the two companies contravened the Immigration and Nationality Act (INA) by exhibiting a preference for workers on temporary visas over U.S. workers during the recruitment process associated with the Permanent Labor Certification (PERM).
“Discrimination against U.S. workers, in favor of those holding temporary visas, is unlawful,” emphasized Assistant Attorney General Dhillon.
“This significant settlement compels OpenAI to amend its hiring strategies, ensuring that American workers are afforded equitable chances at coveted technology positions.”
The investigation revealed that OpenAI failed to promote vacancies associated with the PERM program on its public job portal, a departure from its typical practice for other roles.
Additionally, it mandated prospective candidates to submit paper applications for PERM-related positions while accepting digital applications for other openings.
The company also employed tactics that dissuaded U.S. workers from applying, such as late-night radio advertisements.
Although the number of PERM roles in question was under ten, the settlement amount reflects the adverse impact on U.S. workers denied access to lucrative tech employment.
In accordance with the settlement, OpenAI will remit $1,200,000 in civil penalties to the United States and establish a $2,000,000 back-pay fund for the victims of its discriminatory practices.
Furthermore, OpenAI will provide U.S. workers with fair opportunities to apply for roles connected to the PERM process by publicly listing these positions and accepting electronic applications.
The settlement also mandates the company to train its staff on the INA’s anti-discrimination provisions, amend its hiring policies, and comply with oversight and reporting requirements from the Justice Department to avert future discrimination.
We secured a $3.2 million settlement with OpenAI for discriminating against U.S. workers. Employers must recruit U.S. workers in good faith when sponsoring temporary visa workers for permanent residency via the PERM process. @CivilRights will hold violators accountable!…
— AAGHarmeetDhillon (@AAGDhillon) August 4, 2026
During President Donald Trump’s second term, the Justice Department initiated actions against multiple enterprises accused of prioritizing temporary visa holders during hiring processes.
In April 2026, the Department of Justice achieved a $313,420 settlement with Compunnel Software Group, where recruitment ads explicitly excluded U.S. citizens and permanent residents while favoring temporary visa holders, denying a Python developer role to a U.S. citizen.
DOJ says its U.S.-worker initiative produced 10 settlements in one year, then sued Cloudera for allegedly steering high-paying tech jobs toward temporary visa workers. American workers should not need a federal enforcement campaign to apply for American jobs.
— Dr. Josh C. Simmons (@drjoshcsimmons) August 3, 2026
“It is illegal to deter U.S. workers from pursuing American jobs,” remarked Assistant Attorney General Harmeet K. Dhillon.
“Employers must not marginalize U.S. workers from the labor force based on citizenship status. Recruitment, training, and compliance practices must be meticulously crafted to uphold federal civil rights standards.”
Source link: Townhall.com.
