The Justice Department has secured a $3.2 million settlement with OpenAI and its former subsidiary Statsig over allegations they discriminated against US workers while sponsoring foreign employees for green cards. OpenAI admits no wrongdoing but will submit to three years of DOJ oversight. It’s the highest-profile case yet in the administration’s crackdown on hiring practices.
Key Takeaways
- OpenAI and Statsig settled DOJ discrimination allegations for $3.2M
- The DOJ alleges they steered US citizens away from certain jobs
- OpenAI admits no wrongdoing but accepts three years of oversight
- The case involved fewer than 10 green-card-linked positions
- It’s part of the administration’s push on foreign-worker hiring
What the DOJ Alleged
The Justice Department’s Civil Rights Division announced the settlement Wednesday. It alleged that OpenAI and Statsig used tactics to prevent US citizens from applying for jobs held by immigrant employees while the companies were sponsoring those workers for permanent US residence.
The case centers on PERM, the federal process employers use to sponsor workers for green cards, which requires showing no qualified US worker is available first. According to the DOJ, for certain roles the companies:
- Did not post the PERM openings on OpenAI’s public careers site, though other jobs were advertised there
- Required paper applications by mail, while accepting electronic applications elsewhere
- Advertised some positions on late-night radio, a step the DOJ said discouraged US applicants
The department said these practices violated the anti-discrimination provisions of the Immigration and Nationality Act.
The Terms of the Settlement
The financial and oversight terms break down as follows:
- $1.2 million in civil penalties paid to the United States
- $2 million set aside as a back-pay fund to compensate any US workers found to have been harmed
- Three years of DOJ monitoring and reporting requirements
- Fewer than 10 PERM positions were at issue
OpenAI’s required changes include posting future PERM openings publicly, accepting electronic applications for them, retraining staff, and revising employment policies. The companies did not admit to wrongdoing.
What Oversight Involves
The three years of monitoring give the DOJ a detailed window into the companies’ hiring. Oversight includes:
- Drafting and obtaining DOJ approval for their PERM-role hiring policies
- Submitting semiannual reports to the department
- Reporting how many applications for foreign employees they pursued and how many US citizens they interviewed
OpenAI acquired Statsig in September 2025 and later divested at least part of it in May 2026, but the DOJ said it began investigating both separately in August 2025, covering five OpenAI cases between 2023 and 2025 and one at Statsig.
The Bigger Political Context
The settlement fits a broader enforcement push. The Justice Department has framed it as part of an increased crackdown on companies over the matter, and it arrives amid a national debate over H-1B visas and foreign labor in tech.
The competing views on the issue:
- Supporters of the programs argue companies need access to global talent to keep the US ahead in fields like AI
- Critics contend some employers use immigration pathways in ways that disadvantage American workers
- OpenAI said resolving the dispute lets it continue its immigration sponsorship programs while complying with the agreement
Why It Matters
OpenAI is the most prominent tech company yet caught up in this enforcement wave, and the settlement shows the administration willing to press even the highest-profile AI firms on hiring. The case sits at the intersection of two charged debates, immigration and the AI talent race, and its three-year oversight gives regulators unusual visibility into how a leading lab hires. For now, OpenAI has resolved the matter without admitting fault, but the settlement signals that green-card sponsorship practices across tech are under closer scrutiny than before.
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