OpenAI to pay $3.2M to settle DOJ claims of discrimination against US workers in hiring
The artificial intelligence company denied wrongdoing but agreed to pay $1.2 million in civil penalties, establish a $2 billion back-pay fund, and change how it recruits for jobs connected to permanent residency sponsorship.
The Department of Justice (DOJ) announced Aug. 4 that OpenAI and a subsidiary will pay a combined $3.2 million to resolve allegations that the companies discriminated against American workers by favoring temporary visa holders in recruitment and hiring for certain jobs.
The settlement, secured by the Civil Rights Division’s Immigrant and Employee Rights Section, addresses claims that OpenAI OpCo LLC of San Francisco and its subsidiary Statsig Inc. of Bellevue, Washington, violated the Immigration and Nationality Act, according to a DOJ press release.
Investigators said the companies preferred workers holding temporary employment visas over U.S. applicants when hiring through the Permanent Labor Certification (PERM) process, which allows employers to sponsor foreign workers for permanent resident status if they conduct good-faith recruitment but cannot find qualified U.S. workers.
“This substantial settlement ensures that OpenAI redresses harm and changes its recruitment practices so that U.S. workers receive a fair opportunity for highly sought-after technology positions,” Assistant Attorney General Harmeet K. Dhillon of the DOJ’s Civil Rights Division said in the release.
According to the DOJ, OpenAI allegedly took several steps to discourage U.S. workers from applying, including omitting the relevant PERM positions from its external careers website, where it routinely advertised other openings. The company also required candidates for the PERM positions to apply by mail while accepting electronic applications for other jobs and advertised some positions during late-night radio time slots.
OpenAI disputed the department’s findings but agreed to the settlement.
“While we disagree with the DOJ’s findings, 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,” a company spokesperson told Axios.
Under the agreement, OpenAI will pay $1.2 million in civil penalties to the U.S. and set aside a $2 million back-pay fund to compensate eligible U.S. workers affected by the alleged practices. The company must also post future PERM openings on its public careers site, accept electronic applications, train staff on anti-discrimination rules, revise employment policies, and submit to DOJ monitoring and reporting for three years.
