Settlement pairs $1.2m penalty with $2m in victim compensation
OpenAI and subsidiary Statsig, which makes product development software, will pay $3.2 million to settle US Justice Department claims that they favored foreign workers with temporary employment visas and discriminated against American job applicants in recruiting and hiring, the department said Tuesday.
The agreement includes $1.2 million in penalties and $2 million to compensate alleged victims of discrimination. OpenAI also agreed to revise its employment policies, conduct training, and be subject to monitoring by the Justice Department. The department said that while fewer than 10 positions were at issue, the sizeable settlement reflected the harm OpenAI’s conduct caused to US workers.
In its release, the department alleged that the companies recruited foreign workers for some open positions and took various steps to discourage US workers from applying, violating the Immigration and Nationality Act, which bars discrimination based on citizenship. The steps included requiring applicants to mail paper applications instead of submitting them electronically, advertising jobs on the radio late at night, and not posting the openings on an external website.
OpenAI did not immediately respond to a request for comment. The company denied wrongdoing in the settlement agreement.
Assistant Attorney General Harmeet Dhillon said in a statement that “this substantial settlement ensures that OpenAI redresses harm and changes its recruitment practices so US workers receive a fair opportunity for highly sought-after technology positions.”
The department has announced at least a dozen other settlements since last year in cases involving alleged discrimination against US workers, mostly by tech companies.
The settlement comes as Donald Trump has said that many companies abuse the temporary employment visa system and has sought to limit the hiring of foreign workers. His efforts have included a $100,000 fee on new H-1B visas for highly skilled workers, which are heavily utilized in the tech sector; the fee has been blocked pending legal challenges.