OpenAI agrees to $3.2 million settlement after feds accuse it of discriminating against U.S. workers

OpenAI agreed to pay $3.2 million to settle U.S. Justice Department allegations that it discriminated against U.S. workers by favoring foreign visa holders in hiring, including a $1.2 million fine and $2 million for back pay. The settlement, signed Monday and released Tuesday, covers fewer than 10 jobs and requires OpenAI to change its recruitment practices. Assistant Attorney General Harmeet Dhillon stated, "It is illegal to discriminate against U.S. workers by preferring temporary visa holders for jobs.

Getting your Trinity Audio //trinityaudio.ai player ready...Bay Area artificial intelligence giant OpenAI agreed to pay $3.2 million to resolve federal authorities’ claims that it discriminated against U.S. workers in hiring, while favoring foreign visa holders. The pioneering San Francisco company, whose ChatGPT chatbot has taken the world by storm since its 2022 launch, denied the government’s allegations, according to the settlement agreement signed Monday and released Tuesday. But OpenAI agreed to pay a $1.2 million fine and set aside $2 million to provide “back pay” to any U.S. workers found to have missed out on employment, the agreement said. “It is illegal to discriminate against U.S. workers by preferring temporary visa holders for jobs,” said Assistant Attorney General Harmeet Dhillon, a former San Francisco lawyer heading the U.S. Justice Department’s civil rights division. “This substantial settlement ensures that OpenAI redresses harm and changes its recruitment practices so that U.S. workers receive a fair opportunity for highly sought-after technology positions.” OpenAI did not immediately respond to questions Tuesday. The agreement came amid an immigration crackdown by the administration of President Donald Trump, but also as Bay Area tech companies have gained unprecedented access to the White House. OpenAI CEO Sam Altman has publicly lauded Trump https://www.mercurynews.com/2026/01/22/silicon-valley-pours-out-lobbying-cash-and-flattery-to-win-over-deal-minded-trump/ , and personally donated $1 million https://www.mercurynews.com/2025/11/02/silicon-valley-trump-tech-apple-meta-google/ to the President’s second-term inauguration committee. OpenAI earlier this year signed a deal with the U.S. Department of Defense to provide AI systems to the Pentagon https://www.mercurynews.com/2026/03/08/explosive-dispute-questions-silicon-valleys-track-americans-robot-warfare/ . The Justice Department in a press release said fewer than 10 jobs were at issue, but the settlement amount “reflects the harm to U.S. workers when they are shut out of applying for lucrative technology jobs.” It was unclear how many, if any, foreign workers were hired in alleged violation of federal law on immigration-related employment. The department’s press release and the settlement agreement did not make clear which type of visas were at issue. The department did not immediately respond to questions Tuesday. The department alleged that between June 2023 and at least April 2025, OpenAI made U.S. workers apply for certain jobs by mail, and did not allow them to submit applications via the company’s typical process where applicants apply online for jobs posted on OpenAI’s employment website. “In addition, OpenAI took other steps to discourage U.S. workers from applying, such as advertising positions on the radio late at night,” the department claimed in a press release. The agreement said OpenAI would “only reject U.S. workers for lawful job-related reasons.”