● Covered by 3 sources · 3 reportsMedium impact1 negative2 neutral
OpenAI Settles DOJ Discrimination Claims for $3.2 Million Over Hiring Practices
Key points
- OpenAI and Statsig settled with the DOJ for $3.2 million.
- Allegations involved favoring temporary visa holders over U.S. workers.
- Tactics included not posting jobs publicly and requiring paper applications.
- Settlement mandates changes to hiring practices and oversight.
- $2 million is allocated for potential restitution to U.S. applicants.
Settlement Reached in Discrimination Case
OpenAI and its subsidiary, Statsig, have agreed to a $3.2 million settlement with the U.S. Department of Justice (DOJ) regarding allegations of discrimination against U.S. workers. The DOJ claimed that the companies favored foreign workers holding temporary employment visas over qualified U.S. job applicants.
The settlement includes a $1.2 million fine and sets aside $2 million for potential restitution to U.S. citizens who may have been harmed by the alleged practices. While the companies did not admit wrongdoing, they agreed to the terms of the settlement.
Alleged Discriminatory Hiring Practices
The DOJ's investigation found that OpenAI and Statsig allegedly employed tactics to discourage U.S. workers from applying for certain positions. These tactics included not advertising specific roles on their external jobs website, requiring paper applications for those positions while accepting electronic applications for others, and advertising jobs on the radio late at night.
These actions were alleged to violate provisions of the Immigration and Nationality Act (INA), which requires companies to genuinely seek qualified U.S. citizens for jobs before sponsoring foreign workers for permanent U.S. residence through the Permanent Labor Certification process.
Changes to Hiring Procedures and Oversight
As part of the settlement agreement, OpenAI is required to implement changes to its hiring practices. This includes posting all job openings on its public jobs website and accepting electronic applications for all positions. Company staff will also undergo training related to these new procedures.
The settlement also mandates three years of oversight by the DOJ's Civil Rights Division concerning OpenAI's hiring practices, particularly those related to green-card employee sponsorships. This oversight aims to ensure compliance with non-discriminatory hiring standards.
Context of Visa System Scrutiny
This settlement occurs amidst broader scrutiny of the temporary employment visa system. The DOJ has announced over a dozen similar settlements since last year, primarily involving tech companies, addressing alleged discrimination against U.S. workers. This case is notable due to OpenAI's profile within the tech industry.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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How outlets covered it
The Justice Department's Civil Rights Division announced a settlement with OpenAI and its former subsidiary Statsig, requiring three years of oversight on their hiring practices for green-card sponsorships. The DOJ alleged the companies used tactics to prevent U.S. citizens from applying for jobs tied to immigrant employee sponsorships, violating the Immigration and Nationality Act. This settlement includes a $3.2 million payment, with $1.2 million as a fine and $2 million for potential restitution to affected U.S. citizens.
OpenAI and its subsidiary Statsig will pay $3.2 million to settle claims by the US Justice Department that they discriminated against US job applicants by favoring foreign workers on temporary employment visas. This settlement addresses allegations that the companies used tactics like requiring paper applications and late-night radio ads to discourage US workers, and includes penalties, victim compensation, and revised employment policies.
The US Department of Justice reached a $3.2 million settlement with OpenAI and a subsidiary regarding allegations of discriminating against US workers by preferring temporary visa holders. OpenAI allegedly did not advertise certain roles on its external jobs website and required paper applications for those positions, unlike others. This settlement requires OpenAI to change its hiring practices and establish a back-pay fund for affected individuals.