OpenAI has agreed to pay $3.2 million to settle allegations from the U.S. Department of Justice that it discriminated against American workers by favoring temporary visa holders for certain technology jobs, putting one of the world’s biggest AI companies under scrutiny over its hiring practices.
The settlement comes as the Trump administration steps up enforcement against employers accused of bypassing qualified U.S. workers through the immigration system. The Justice Department said the case sends a broader message to the technology industry about complying with federal hiring laws.
According to the DOJ, OpenAI and its subsidiary Statsig Inc. failed to provide U.S. workers with a fair chance to apply for some positions sponsored through the permanent labor certification process, or PERM, which employers use when seeking permanent residency for foreign workers.
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“It is illegal to discriminate against U.S. workers by preferring temporary visa holders for jobs,” Assistant Attorney General Harmeet K. Dhillon said in a Tuesday news release.
“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.”
The Justice Department alleged that the company did not publicly advertise certain PERM-related jobs on its careers website before filling them, even though it routinely listed other vacancies online. Investigators also accused OpenAI of discouraging American applicants by requiring paper applications to be mailed and promoting some openings through late-night radio advertisements.
Under the settlement, OpenAI will pay $1.2 million in civil penalties and create a $2 million fund for workers the DOJ says may have been affected. Although the case involved fewer than 10 positions, the department said the settlement amount reflects the impact of shutting qualified U.S. workers out of lucrative technology jobs.
OpenAI said it does not agree with the DOJ’s conclusions but chose to resolve the matter.
“Our mission is to ensure that AGI benefits all of humanity.”
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“Fulfilling that mission and maintaining America’s leadership in AI requires attracting and retaining the best talent from the United States and around the world,” an OpenAI spokesperson said in an emailed statement to Axios.
“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.”
As part of the agreement, OpenAI must publicly post PERM-related job openings on its careers website, accept electronic applications, train employees involved in recruitment, and comply with DOJ monitoring and reporting requirements.
The settlement is the 13th one reached since the Justice Department revived its Protecting U.S. Workers Initiative in 2025, an effort aimed at enforcing the Immigration and Nationality Act’s prohibition on citizenship status discrimination in hiring.