US govt accuses OpenAI of breaking immigration act provisions

The US government has accused OpenAI and its subsidiary Statsig of violating provisions of the Immigration and Nationality Act (INA) by allegedly discriminating against US workers while recruiting for some technology jobs. The Justice Department said its Civil Rights Division has reached a combined $3.2 million settlement with the companies over the allegations. According to the department, OpenAI and Statsig allegedly preferred workers holding temporary employment visas during recruitment under the Permanent Labor Certification (PERM) process. The settlement covers fewer than 10 PERM positions but includes civil penalties and money to compensate affected US workers.For those unaware, OpenAI acquired Statsig in September last year and later divested at least part of the business in May 2026. Justice Department says OpenAI discouraged US workers from applyingThe Justice Department said its investigation found that OpenAI used different recruitment practices for positions it sought to fill through the PERM program. According to the department, OpenAI did not advertise these positions on its external jobs website, even though it normally used the website for other job openings.In a press release, the justice department said that the company also allegedly required people to send paper applications by mail for jobs advertised as part of PERM recruitment, while allowing electronic applications for other positions. It further alleged that OpenAI took other steps that discouraged US workers from applying, including advertising some positions on the radio late at night.“It is illegal to discriminate against U.S. workers by preferring temporary visa holders for jobs,” Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division said. “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,” Dhillon added.OpenAI, Statsig settlement totals $3.2 millionUnder the settlement, OpenAI will pay $1.2 million in civil penalties to the US government. It will also establish a $2 million back-pay fund to compensate people affected by the alleged discriminatory recruitment practices. The agreement also requires OpenAI to change how it recruits for PERM positions. The company will have to post such jobs on its public careers website and allow US workers to submit applications electronically.OpenAI must also train relevant employees on the INA's anti-discrimination requirements, revise its employment policies and comply with Justice Department monitoring and reporting requirements.What is the PERM processThe PERM program allows US employers to sponsor foreign workers for permanent resident status, or a Green Card, after meeting certain requirements. As part of the process, employers must carry out recruitment in good faith and establish that they cannot find qualified US workers for the position.Get the latest technology news and updates. Download the TOI App.