OpenAI unit settles discrimination allegations with US Justice Department for $3.2M

OpenAI OpCo LLC and its subsidiary Statsig Inc. have reached a settlement with the US Department of Justice over allegations that the companies discriminated against American workers during hiring. The total financial resolution comes to $3.2 million. The DOJ’s Civil Rights Division alleged that OpenAI’s units gave preferential treatment to temporary visa holders in recruitment processes tied to the Permanent Labor Certification program, known as PERM. That program is designed to allow employers to sponsor foreign workers for green cards, but companies are supposed to genuinely test the US labor market first, not just go through the motions. What the settlement looks like The deal breaks down into two chunks. OpenAI will pay $1.2 million in civil penalties to the government. On top of that, the company will establish a $2 million back-pay fund for US workers who were affected by the alleged discrimination. The settlement also mandates changes to OpenAI’s recruitment practices going forward. The company will need to ensure that its hiring processes for PERM-related positions provide fair opportunities to US workers. Assistant Attorney General Harmeet K. Dhillon framed the resolution...