Technology

OpenAI to Pay $3.2 Million Over DOJ Allegations It Discouraged U.S. Workers From Applying to Green-Card-Linked Roles

Martin HollowayPublished 3d ago5 min readBased on 9 sources
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OpenAI to Pay $3.2 Million Over DOJ Allegations It Discouraged U.S. Workers From Applying to Green-Card-Linked Roles
source:justice.gov

The U.S. Department of Justice's Civil Rights Division announced on August 5, 2026, a settlement with OpenAI OpCo LLC of San Francisco over allegations that the AI lab and its one-time subsidiary Statsig discriminated against U.S. workers in the permanent labor certification (PERM) process. The PERM process is the regulatory step where an employer must show it has tried and failed to find a qualified U.S. worker before sponsoring a foreign employee for a green card. Under the agreement, OpenAI will pay $3.2 million and submit to three years of oversight over its hiring practices for roles tied to green-card sponsorship. Neither OpenAI nor Statsig admitted wrongdoing.

The DOJ's investigation began in August 2025 and covered five cases at OpenAI between 2023 and 2025, plus one case at Statsig. Fewer than 10 roles were at issue in total. The settlement includes $1.2 million in civil penalties and $2 million in a back-pay fund to compensate U.S. citizens the DOJ determined were harmed by the alleged discrimination.

At the heart of the case is the Immigration and Nationality Act (INA), passed in 1952, which requires employers sponsoring a foreign worker for permanent U.S. residence to genuinely test the U.S. labor market first. The DOJ alleged that OpenAI and Statsig violated the INA's anti-discrimination provisions by structuring their PERM recruitment to deter qualified U.S. citizens from applying. Specifically, the companies allegedly failed to list roles on public job boards, advertised some openings via late-night radio spots, and required paper applications rather than accepting online submissions.

The practical effect of these tactics, according to the DOJ, was to minimize the likelihood that a qualified U.S. citizen would apply for and potentially fill the position. If a U.S. citizen did fill it, the employer's ability to sponsor the incumbent foreign worker for a green card would be complicated or derailed entirely.

Under the settlement, OpenAI and Statsig must draft PERM-role hiring policies and obtain DOJ approval for them. The companies must also submit semi-annual reports documenting applications received for foreign employees and interviews conducted with U.S. citizen candidates for those positions.

The corporate relationship between OpenAI and Statsig adds a wrinkle. OpenAI acquired Statsig, an AI A/B testing company, in September 2025, and later divested at least part of the business in May 2026. The DOJ's settlement runs against OpenAI OpCo LLC directly, covering alleged conduct that spans the period when Statsig operated under OpenAI's ownership and, in the Statsig case, potentially before it.

Reuters, Axios, and Fox Business all reported the $3.2 million figure on August 4 and 5, 2026. The DOJ's official press release, titled "Civil Rights Division Secures Settlement with OpenAI for Discriminating Against U.S. Workers," is published on the Justice Department's Office of Public Affairs page, and the settlement is also documented on the Civil Rights Division's Settlements and Lawsuits page and its Immigrant and Employee Rights Section page.

The broader context here matters for any technology company that sponsors foreign workers for permanent residency. During the Biden administration, both Facebook and Apple signed similar employment-discrimination settlements with the DOJ over INA violations in their PERM processes. Those cases, however, involved allegations that were widespread and systematic across large portions of the companies' hiring operations. The OpenAI case is narrower in scope: fewer than 10 roles, a relatively modest financial penalty by the standards of a company of OpenAI's valuation, and no admission of liability.

The oversight terms, though, are the more consequential element. A three-year period during which OpenAI must obtain DOJ approval for its PERM hiring policies and file semi-annual reports creates a compliance footprint that extends well beyond the financial cost. For a company engaged in aggressive talent acquisition across borders, any friction in the green-card sponsorship pipeline has downstream effects on retention and recruiting, particularly for employees on H-1B visas who depend on employer-sponsored permanent residency to remain in the United States long-term.

Worth noting is that PERM-process scrutiny is not a new enforcement frontier but an ongoing one that predates the current administration. The INA's protections for U.S. workers in the permanent-residency sponsorship pipeline have been enforced under multiple DOJ leaderships, against companies ranging from social media platforms to hardware manufacturers. What differs here is the target: a company at the center of the current AI investment cycle, whose hiring practices are under unusually intense public and regulatory attention across multiple dimensions.

For the technology industry, the settlement is a reminder that immigration-related hiring compliance operates on a separate track from the more visible debates around AI safety, model governance, and antitrust enforcement. A company can be at the frontier of AI research and simultaneously find itself subject to a 74-year-old statute governing how it advertises a handful of positions.