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Times of India·3 min read·medium

US govt accuses OpenAI of breaking immigration act provisions

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TOI TECH DESK
US govt accuses OpenAI of breaking immigration act provisions
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The US Department of Justice has reached a $3.2 million settlement with OpenAI and its former subsidiary Statsig over allegations of discriminatory hiring practices. The government claimed the companies favored temporary visa holders over US workers during the PERM recruitment process.

Why it matters

This highlights the regulatory scrutiny facing major AI firms regarding labor compliance and fair hiring practices for high-tech roles.

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The US government has accused OpenAI and its subsidiary Statsig of violating provisions of the Immigration and Nationality Act (INA) by allegedly discriminating against US workers while recruiting for some technology jobs. The Justice Department said its Civil Rights Division has reached a combined $3.2 million settlement with the companies over the allegations. According to the department, OpenAI and Statsig allegedly preferred workers holding temporary employment visas during recruitment under the Permanent Labor Certification (PERM) process. The settlement covers fewer than 10 PERM positions but includes civil penalties and money to compensate affected US workers.For those unaware, OpenAI acquired Statsig in September last year and later divested at least part of the business in May 2026. Justice Department says OpenAI discouraged US workers from applyingThe Justice Department said its investigation found that OpenAI used different recruitment practices for positions it sought to fill through the PERM program.

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