OpenAI Settles DOJ Lawsuit for $3.2M After Newsweek's H-1B Reporting
Summary
OpenAI agreed to pay $3.2 million to settle a lawsuit by the U.S. Department of Justice after being accused of discriminating against American workers in its hiring process. The settlement resolves claims that OpenAI favored foreign workers with temporary visas and used recruitment methods that made it hard for U.S. applicants to apply for certain job openings.Key Facts
- The Department of Justice accused OpenAI of discriminating against U.S. workers during the Permanent Labor Certification (PERM) hiring process.
- OpenAI settled by agreeing to pay $1.2 million in penalties and $2 million in backpay to affected workers.
- The DOJ found OpenAI failed to advertise some PERM jobs properly and used unusual methods such as late-night radio ads and paper applications, discouraging U.S. applicants.
- PERM is a process employers use to sponsor foreign workers for permanent residency only after trying to hire qualified U.S. workers.
- OpenAI agreed to change its hiring practices, including advertising PERM jobs on its public website and accepting electronic applications.
- The company also committed to training staff on anti-discrimination rules and allowing federal monitoring.
- OpenAI denies wrongdoing but chose to settle to focus on its hiring program, which supports employees needing immigration help.
- This settlement follows earlier Newsweek reporting that showed some companies advertise green card jobs in ways that U.S. job seekers rarely see.
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