AI Firm Settles with Justice Department Over Worker Bias Allegations

Deep News08-05

The U.S. Department of Justice announced on Tuesday that OpenAI and its Washington-based subsidiary, Statsig, will pay $3.2 million to resolve allegations of discrimination against American workers. The DOJ stated it found "reasonable cause" to believe that OpenAI, through its permanent labor certification (PERM) process, made it harder for U.S. workers to apply for positions the company intended to fill with foreign workers.

"It is illegal to discriminate against U.S. workers by favoring temporary visa holders," said Assistant Attorney General Harmeet K. Dhillon in a statement. "This substantial settlement ensures OpenAI rectifies the harm and revises its hiring practices, giving American workers a fair chance at highly sought-after tech positions."

OpenAI disagreed with the findings but agreed to the settlement to continue supporting programs requiring worker immigration assistance. "OpenAI's mission is to ensure that artificial general intelligence (AGI) benefits all of humanity," a company spokesperson stated. "Fulfilling this mission and maintaining U.S. leadership in AI requires attracting and retaining top talent from across the U.S. and the world. While we disagree with the DOJ's findings, we reached this agreement to resolve the matter and proceed with our PERM program, which is critical for employees and candidates needing immigration support."

Of the $3.2 million settlement, OpenAI will pay $1.2 million in civil penalties. The remaining $2 million will fund compensation for victims harmed by the alleged discriminatory practices.

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