OpenAI pays $3.2 million in US probe over hiring foreign workers

Artificial intelligence firm OpenAI and its subsidiary will pay $3.2 million to resolve claims by the U.S. government that they discriminated against American job applicants by favoring foreign workers on temporary employment visas. The Justice Department announced the settlement Tuesday, stating that OpenAI and Statsig, a software development company, recruited foreign workers for open positions while actively discouraging U.S. applicants.

According to the Justice Department, the companies employed tactics such as requiring paper applications instead of electronic submissions, advertising job openings late at night on the radio, and failing to post openings on external websites. OpenAI, which denied wrongdoing in the settlement agreement, did not immediately respond to a request for comment.

This settlement is one of at least a dozen the Justice Department has reached since last year concerning alleged discrimination against U.S. workers, predominantly involving tech companies. While not as high-profile as OpenAI, these cases reflect a broader trend of scrutinizing hiring practices.

Assistant Attorney General Harmeet Dhillon stated that the 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 both companies violated the federal Immigration and Nationality Act, which prohibits citizenship-based discrimination. Despite fewer than 10 positions being at issue, the substantial settlement was deemed necessary due to the harm caused to U.S. workers.

The agreement includes $1.2 million in penalties and $2 million to compensate alleged victims. OpenAI has also committed to revising its employment policies, implementing training programs, and accepting monitoring by the Justice Department.

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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.