DOJ settles with OpenAI for $3.2 million over hiring discrimination

The U.S. Department of Justice has reached a $3.2 million settlement with OpenAI over allegations of hiring discrimination against U.S. workers. The settlement includes OpenAI and one of its subsidiaries and addresses claims that the companies favored hiring workers with temporary employment visas over qualified U.S. citizens.

The investigation by the DOJ revealed that OpenAI did not follow standard recruitment practices required for employment-based immigration. Typically, companies must advertise job openings to U.S. workers to ensure that foreign workers are not displacing American citizens. However, OpenAI allegedly failed to advertise these roles on its public jobs website, instead opting for less accessible methods, such as late-night radio advertisements, and requiring applicants to submit paper applications for certain positions while accepting electronic applications for others.

As part of the settlement, OpenAI must implement changes to its hiring practices. This includes posting job openings on its public website and accepting electronic applications for all roles. The company will also provide anti-discrimination training for its staff in accordance with the Immigration and Nationality Act. The financial terms of the settlement include a $1.2 million civil penalty to the U.S. government and an additional $2 million to establish a back-pay fund for victims of the alleged discrimination. The DOJ has not clarified how it will identify the individuals eligible for compensation from this fund, which may prove challenging given the nature of the claims.

This settlement reflects a broader trend of the DOJ addressing discrimination in hiring practices among tech companies. Other firms, such as Meta and Apple, have faced similar scrutiny and reached settlements for under-advertising job opportunities. The changing landscape of U.S. immigration policy, particularly under the Biden administration, has heightened awareness around hiring practices, especially in sectors that heavily rely on immigrant workers.