OpenAI OpCo LLC agreed to a $3.2 million Justice Department settlement over allegations it disadvantaged U.S. workers during hiring for green card sponsorship roles, including by limiting how those jobs were advertised and accepting only paper applications.
The Justice Department detailed allegations that OpenAI’s Permanent Labor Certification process (PERM)-related recruiting treated U.S. applicants differently than other candidates, including by not listing PERM roles on its public careers site. The government also said applicants for those PERM roles were told to submit paper applications even though other openings accepted online submissions.
Assistant Attorney General Harmeet K. Dhillon said, "It is illegal to discriminate against U.S. workers by preferring temporary visa holders for jobs." Dhillon added, "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."
$1.2M In Civil Penalties, $2M In Back Pay
Justice also said the investigation found other tactics that allegedly made it harder for U.S. workers to apply, including late-night radio ads. The department said fewer than 10 PERM roles were involved, but argued the payment size reflects the impact of blocking access to high-paying tech jobs.
Under the agreement, OpenAI will pay $1.2 million in civil penalties and set aside $2 million for back pay to affected workers, according to Justice. The settlement also affects its subsidiary Statsig Inc.
OpenAI has also agreed to post PERM openings on its public careers page and accept electronic applications. It must also gain training on the Immigration and Nationality Act’s anti-discrimination rules.
The Justice Department said the PERM system is meant to test the U.S. labor market in good faith before sponsoring a worker for permanent residency, and employers cannot discriminate based on citizenship status during that process.
Microsoft Corp (NASDAQ:MSFT) owns about a 27% diluted equity stake in OpenAI’s for-profit entity, OpenAI Group PBC.
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