OpenAI pays $3.2 million in US probe over hiring foreign workers
OpenAI and its subsidiary Statsig have agreed to pay $3.2 million to settle allegations by the U.S. government that they discriminated against American job seekers by favoring foreign workers who held temporary employment visas, the U.S. Justice Department said on Tuesday.
According to the department, the companies recruited foreign workers for certain positions while taking measures that discouraged U.S. applicants from applying.
The alleged practices included requiring American candidates to submit applications by mail instead of electronically, advertising vacancies on radio during late-night hours and failing to publish some job openings on external websites.
OpenAI did not immediately respond to a request for comment but denied wrongdoing as part of the settlement agreement.
The Justice Department has reached at least a dozen similar settlements since last year involving allegations that companies discriminated against U.S. workers, with most of the cases involving technology firms. However, the OpenAI case is among the most prominent.
The settlement comes as President Donald Trump’s administration has stepped up efforts to restrict the use of temporary employment visas, arguing that some companies exploit the system to hire foreign workers. The administration has also introduced a $100,000 fee for new H-1B visas, which are widely used in the technology industry. The fee is currently blocked while legal challenges continue.
Assistant Attorney General Harmeet Dhillon said the settlement would require OpenAI to address the alleged harm and change its recruitment practices to ensure American workers have equal opportunities for highly sought-after technology jobs.
The Justice Department said the companies violated the federal Immigration and Nationality Act, which prohibits discrimination based on citizenship.
Although fewer than 10 positions were involved in the case, the department said the size of the settlement reflected the impact of the alleged discrimination on U.S. workers.
Under the agreement, $1.2 million will be paid in penalties, while another $2 million will go toward compensating workers who were allegedly discriminated against. OpenAI will also revise its employment policies, provide training and undergo monitoring by the Justice Department.
Source: Reuters
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