OpenAI has agreed to three years of federal oversight of its hiring practices after reaching a settlement with the U.S. Department of Justice over allegations linked to employment-based green card applications.
The agreement also covers Statsig, an AI testing company that was previously owned by OpenAI. While neither company admitted wrongdoing, they agreed to pay a total of $3.2 million, including a $1.2 million civil penalty and $2 million earmarked for potential compensation of U.S. applicants found to have been affected.
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Hiring Practices Under Scrutiny
The Justice Department alleged that the companies failed to properly recruit qualified U.S. workers before sponsoring foreign employees for permanent residency, as required under the Immigration and Nationality Act.
According to the DOJ, some positions were not advertised through standard public channels, job announcements aired on late-night radio, and applications were accepted only in paper form, practices the department said could discourage U.S. candidates from applying.
Although the case involved fewer than 10 positions, the settlement requires OpenAI and Statsig to implement new hiring policies, submit them for government approval and provide semiannual reports detailing PERM applications, interviews with U.S. candidates and other recruitment data.
Part Of A Broader Enforcement Effort
The Justice Department said the investigation began in 2025, before OpenAI acquired Statsig later that year. The inquiry covered five OpenAI cases between 2023 and 2025, along with one involving Statsig.
Officials described the settlement as part of a broader effort to enforce employment rules governing permanent residency sponsorships. Similar cases have previously been brought against major technology companies, including Apple and Facebook, under the same legislation.
