OpenAI Settles Discrimination Allegations for $3.2 Million
OpenAI, along with its subsidiary Statsig Inc., has agreed to pay $3.2 million to settle claims that it favored foreign workers on temporary visas over U.S. applicants. This settlement was announced by the Justice Department on Tuesday.
The Justice Department’s findings suggested that OpenAI and Statsig violated the Immigration and Nationality Act by blocking qualified American workers from applying for certain jobs that were available through the Permanent Labor Recognition (PERM) process.
Specifically, it was alleged that the companies hired foreign candidates while implementing measures to deter U.S. workers. For instance, they reportedly did not post certain jobs on their recruitment site as they typically would for other positions, which meant American applicants weren’t aware of these opportunities.
Furthermore, investigators noted that OpenAI engaged in practices that discouraged local applicants. These included only allowing paper applications for certain roles while accepting digital submissions for others, and even broadcasting radio ads during late-night hours.
The settlement consists of a $1.2 million civil penalty and $2 million allocated for the alleged victims of this discriminatory practice. In addition to the financial aspect, OpenAI will revise its hiring policies, provide relevant training, and be subject to oversight from the Justice Department.
Despite the settlement, OpenAI has denied any wrongdoing.
Assistant Attorney General Harmeet Dhillon commented, emphasizing that favoring temporary visa holders over American workers is against the law. She stated that this settlement aims to rectify damages and adjust hiring practices to give American workers a fair chance at competitive technology jobs.
Interestingly, former President Donald Trump had previously expressed concerns over the temporary visa system, contending that many companies exploit it. He had advocated for a substantial fee for H-1B visas aimed at skilled workers, though this proposal remains in legal limbo.
OpenAI has not responded to requests for further comment.
