Justice Department Fines OpenAI $3.2 Million for Discriminating Against U.S. Workers
(San Francisco, CA = Alex Walczak) The U.S. Department of Justice’s Civil Rights Division announced a $3.2 million settlement with OpenAI and its subsidiary Statsig for discriminating against American workers during the permanent labor certification hiring process.
On August 4, 2026, the Justice Department revealed that OpenAI OpCo LLC, a leading artificial intelligence company based in San Francisco, and its Bellevue-based software subsidiary, Statsig Inc., agreed to pay a combined $3.2 million to resolve allegations of discrimination against U.S. workers. The companies were accused of violating the Immigration and Nationality Act (INA) by favoring temporary visa holders over American applicants during the Permanent Labor Certification (PERM) recruitment process.
Assistant Attorney General Harmeet K. Dhillon emphasized the illegality of discriminating against U.S. workers by preferring temporary visa holders. “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,” Dhillon said.
The Justice Department’s investigation found that OpenAI did not post PERM job openings on its external career website, unlike its usual practice for other roles. Additionally, the company required applicants for these positions to submit paper applications by mail, while electronic applications were accepted for other jobs. OpenAI also placed radio ads for these roles during late-night hours, further discouraging American applicants.
Though fewer than ten PERM positions were involved, the department noted the significant impact on U.S. workers being excluded from lucrative tech jobs. Under the settlement, OpenAI will pay $1.2 million in civil penalties to the government and establish a $2 million back-pay fund to compensate affected workers.
The agreement also mandates that OpenAI post PERM job openings on its public website and accept electronic applications moving forward. The company must train staff on INA anti-discrimination rules, revise employment policies, and comply with ongoing monitoring and reporting requirements to prevent future violations.
The PERM program allows employers to sponsor foreign workers for permanent residency only after demonstrating a good-faith effort to recruit qualified U.S. workers. Discriminating against U.S. applicants based on citizenship status during this process is prohibited by law.
This settlement marks the 13th under the Justice Department’s Protecting U.S. Workers Initiative, relaunched in 2025 to crack down on companies that unlawfully favor visa holders over American workers. The initiative enforces strict penalties, mandates back pay where appropriate, and requires comprehensive training to ensure fair hiring practices.
The Civil Rights Division continues to provide resources and support for workers and employers regarding citizenship-based hiring discrimination. For more information, individuals can access free assistance via hotline, webinars, or the department’s website.
