financetom
Economy
financetom
/
Economy
/
OpenAI pays $3.2 million in US probe over hiring foreign workers
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
OpenAI pays $3.2 million in US probe over hiring foreign workers
Aug 4, 2026 12:52 PM

Aug 4 (Reuters) - OpenAI and a subsidiary will pay $3.2 million to settle U.S. government claims that they favored foreign workers with temporary employment visas and discriminated against U.S. job applicants in recruiting and hiring, the U.S. Justice Department said on Tuesday.

The Justice Department in a release said that OpenAI and Statsig, which makes product development software, recruited foreign workers for some open positions and took various steps to discourage U.S. workers from applying. 

That included requiring them to mail paper applications instead of submitting electronic ones, advertising jobs on the radio late at night, and not posting the openings on an external website, the Justice Department said. OpenAI did not immediately respond to a request for comment. The company denied wrongdoing in the settlement agreement. 

The Justice Department has announced at least a dozen other settlements since last year in cases involving alleged discrimination against U.S. workers, mostly by tech companies but none as high-profile as OpenAI. 

President Donald Trump, a Republican, has said that many companies abuse the temporary employment visa system and has sought to limit the hiring of foreign workers. That has included imposing a $100,000 fee on new H-1B visas for highly skilled workers, which are heavily utilized in the tech sector. The fee has been blocked pending legal challenges. 

Assistant Attorney General Harmeet Dhillon said in a statement that "this substantial settlement ensures that OpenAI redresses harm and changes its recruitment practices so that U.S. workers receive a fair opportunity for highly sought-after technology positions."

The Justice Department alleged that both companies violated the federal Immigration and Nationality Act, which bars discrimination based on citizenship. 

The department said that while there were fewer than 10 positions at issue, the sizeable settlement reflected the harm OpenAI's conduct caused to U.S. workers. 

The settlement includes $1.2 million in penalties and $2 million to compensate alleged victims of discrimination. OpenAI also agreed to revise its employment policies, conduct training, and to be subject to monitoring by the Justice Department, the agency said. 

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Fed Officials Flag Rate Hike Possibility if Inflationary Pressures Persist, FOMC Minutes Show
Fed Officials Flag Rate Hike Possibility if Inflationary Pressures Persist, FOMC Minutes Show
May 20, 2026
03:43 PM EDT, 05/20/2026 (MT Newswires) -- Federal Reserve officials flagged the possibility of higher interest rates if the Middle East conflict drags on and keeps inflation above the 2% goal, minutes from the central bank's April meeting showed Wednesday. At that meeting, the Federal Open Market Committee decided to keep its policy rate unchanged between 3.50% and 3.75% for...
Fed proposes to establish limited payment accounts
Fed proposes to establish limited payment accounts
May 20, 2026
WASHINGTON, May 20 (Reuters) - The U.S. Federal Reserve proposed Wednesday adopting a new, more limited form of a payment account that would allow firms like fintechs the ability to move money across the Fed's payment rails without enjoying all the backstops available to traditional banks. In a statement, the Fed said the proposed accounts would not include access to...
Cargill locks out 1,700 workers at US beef plant in labor dispute
Cargill locks out 1,700 workers at US beef plant in labor dispute
May 20, 2026
CHICAGO, May 20 (Reuters) - Cargill stopped paying about 1,700 employees at a beef plant in Fort Morgan, Colorado, on Wednesday in an escalating labor dispute, after suspending cattle slaughtering at the facility a month ago, the workers' union said.    The U.S. beef industry is in a period of upheaval as prices have set records this year, with strong demand...
Fed minutes show more policymakers open to a rate hike
Fed minutes show more policymakers open to a rate hike
May 20, 2026
WASHINGTON, May 20 (Reuters) - Federal Reserve officials' concerns about inflation being stoked by the Iran war intensified last month, with a growing number open to a possible rate hike, in a sign that incoming Chair Kevin Warsh will inherit an increasingly hawkish crew of central bankers. A majority of Fed policymakers at their April 28-29 meeting felt some policy...
Copyright 2023-2026 - www.financetom.com All Rights Reserved