OpenAI settles DOJ discrimination case for $3.2 million
OpenAI and its subsidiary Statsig will pay $3.2 million to settle a US Justice Department case alleging the companies discriminated against US workers. The DOJ found OpenAI unfairly favored temporary visa holders in its hiring process for its PERM program. While OpenAI disagreed with the findings, it settled to move forward. The settlement includes a $2 million fund for victims and requires changes to recruitment practices.
DOJ discrimination findings
▪The US Justice Department found OpenAI and its subsidiary, Statsig, discriminated against US workers by unfairly favoring temporary visa holders.
▪The DOJ stated that fewer than 10 positions were at issue across both OpenAI and Statsig.
▪The DOJ found "reasonable cause" to believe OpenAI and Statsig made it more difficult for US workers to apply for positions intended for foreign workers.
Settlement terms
▪OpenAI and its subsidiary Statsig agreed to a $3.2 million settlement with the US Justice Department over the allegations.
▪The settlement includes $1.2 million in civil penalties to be paid by OpenAI.
▪The settlement requires OpenAI to change its recruitment practices to give U.S. workers a fair opportunity for technology positions.
▪A $2 million fund will be established from the settlement to compensate victims of the companies' discriminatory practices.
PERM program violations
▪The DOJ said OpenAI required paper mail-in applications for PERM-related jobs, while typically allowing electronic applications for other roles.
▪The alleged discrimination was related to the Permanent Labor Certification (PERM) program, which lets companies sponsor temporary visa holders for permanent status.
▪Under the PERM program, sponsorship is allowed only if companies cannot find qualified US workers after a good-faith recruitment effort.
▪The DOJ said OpenAI and Statsig failed to post some jobs on external sites and did not advertise them on the radio late at night.
OpenAI response
▪OpenAI said it settled the case to move forward with its PERM program, which it called critical for employees requiring immigration support.
▪OpenAI stated that it disagreed with the Justice Department's findings.
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