OpenAI reaches $3.2 million settlement with DOJ over claims it discriminated against US workers
OpenAI and its subsidiary Statsig have agreed to pay $3.2 million to settle Justice Department allegations of discriminating against U.S. workers in favor of visa holders. OpenAI denies the findings but settled to avoid further legal friction.
Why it matters
The settlement underscores increased federal scrutiny on hiring practices within the tech industry, particularly regarding the use of H-1B and other temporary work visas.
OpenAI said it disagreed with the Justice Department's findings but wanted to move ahead. SeongJoon Cho/Bloomberg via Getty Images The Justice Department said OpenAI and a subsidiary discriminated against US workers. OpenAI disputes the findings but will pay $3.2 million to settle the claims. The Trump administration has sought to crackdown on companies it sees as abusing the visa process. The Justice Department said OpenAI and one of its subsidiaries discriminated against US workers by unfairly favoring workers with temporary visa status during the hiring process. On Tuesday, the Justice Department announced that OpenAI and Statsig, a subsidiary software development company based in Bellevue, Washington, would pay $3.2 million to settle the allegations. "It is illegal to discriminate against U.S. workers by preferring temporary visa holders for jobs," Assistant Attorney General Harmeet K. Dhillon said in a statement.
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