OpenAI and its former subsidiary Statsig have agreed to a $3.2 million settlement with the DOJ, which alleges the companies failed to adequately consider U.S. citizens for roles filled by green-card holders. The settlement includes three years of oversight by the DOJ's Civil Rights Division.
TL;DR
- OpenAI and Statsig settle with the DOJ over allegations of bypassing U.S. citizens in green-card hiring processes.
- The $3.2 million settlement includes a $1.2 million fine and $2 million for potential restitution to affected U.S. citizens.
- The settlement highlights increased scrutiny on tech companies' hiring practices under the Immigration and Nationality Act (INA).
What happened
The DOJ's Civil Rights Division announced a settlement with OpenAI and Statsig on Wednesday, following allegations that the companies did not make a meaningful effort to hire U.S. citizens before sponsoring immigrant employees for permanent residence. The settlement includes a $3.2 million payment, with $1.2 million as a fine and $2 million set aside for potential restitution to affected U.S. citizens.
The DOJ alleged that OpenAI and Statsig violated provisions of the Immigration and Nationality Act (INA) by not thoroughly searching for qualified U.S. citizens for roles before pursuing permanent residence applications (PERM). The companies were accused of not listing roles on public job boards, advertising at inconvenient times, and requiring paper applications.
As part of the settlement, OpenAI and Statsig must submit to three years of oversight by the DOJ, including approval of their PERM-role hiring policies and semi-annual reports on their hiring practices. The DOJ's investigation began in August 2025 and covered five cases at OpenAI between 2023 and 2025, and one at Statsig.
Why it matters
This settlement underscores the DOJ's increased focus on enforcing the INA, particularly in the tech industry. It follows similar settlements with Facebook and Apple during the Biden administration, although those cases involved more widespread allegations.
For AI startups and tech investors, this news highlights the importance of adhering to labor laws and ensuring transparent hiring practices. Non-compliance can result in significant fines and reputational damage.
The settlement also raises questions about the broader implications for tech companies hiring foreign talent, particularly in competitive fields like AI and machine learning. Companies may need to review their hiring processes to ensure compliance with the INA.
Key facts
- OpenAI and Statsig agreed to a $3.2 million settlement with the DOJ.
- The settlement includes a $1.2 million fine and $2 million for potential restitution to affected U.S. citizens.
- The DOJ alleged violations of the Immigration and Nationality Act (INA) by not adequately considering U.S. citizens for roles filled by green-card holders.
- The settlement includes three years of oversight by the DOJ's Civil Rights Division.
- The DOJ's investigation began in August 2025 and covered five cases at OpenAI between 2023 and 2025, and one at Statsig.
- OpenAI acquired Statsig in September 2025 and later divested at least part of the business in May 2026.
- The DOJ has been increasing its crackdown on companies over green-card hiring practices.
- Similar settlements were reached with Facebook and Apple during the Biden administration.
Context
The Immigration and Nationality Act (INA) requires companies to make a good-faith effort to hire U.S. citizens before sponsoring immigrant employees for permanent residence. This settlement is part of a broader trend of increased enforcement of these provisions by the DOJ.
Tech companies, particularly those in competitive fields like AI, often rely on foreign talent to fill specialized roles. However, this settlement serves as a reminder of the importance of adhering to labor laws and ensuring transparent hiring practices.
For AI startups and investors, this news highlights the need to stay informed about labor laws and regulations to avoid potential legal issues and reputational damage.