DOJ Settlement Puts OpenAI Hiring Practices Under Three Years of Oversight

OpenAI and its former subsidiary Statsig have agreed to a settlement with the U.S. Department of Justice that places their employment practices under federal oversight for three years following allegations involving green-card sponsorship hiring procedures.

The Justice Department’s Civil Rights Division announced that the companies will pay $3.2 million as part of the settlement. The agreement includes a $1.2 million civil penalty, while the remaining $2 million has been set aside to compensate any qualified U.S. citizens the department determines were harmed by the hiring practices. Neither OpenAI nor Statsig admitted wrongdoing.

The DOJ alleged that the companies violated provisions of the Immigration and Nationality Act by failing to properly recruit qualified U.S. workers before sponsoring foreign employees for permanent residence through the PERM process. According to the department, some positions were not advertised on public job boards, radio advertisements aired late at night, and paper applications were required instead of electronic submissions.

Oversight to continue for three years

Although the investigation involved fewer than 10 positions, the settlement requires both companies to submit to federal oversight of their PERM hiring process. The companies must develop hiring policies for PERM roles, obtain DOJ approval, and submit reports every six months detailing sponsorship applications, interviews with U.S. applicants and other recruitment data.

The Justice Department said it began investigating the companies separately in August 2025, examining five OpenAI cases dating from 2023 to 2025 and one case involving Statsig. OpenAI acquired AI experimentation startup Statsig in September 2025 before later divesting part of the business in May 2026.

Part of broader enforcement efforts

The DOJ said the settlement reflects its continuing enforcement of the Immigration and Nationality Act, which requires employers seeking permanent residence for foreign workers first to make genuine efforts to recruit qualified U.S. employees.

Similar enforcement actions have been taken against major technology companies under previous administrations. During President Joe Biden’s administration, Facebook and Apple also reached settlements with the Justice Department over alleged violations involving the PERM recruitment process, although those cases involved broader and more systematic allegations.