The U.S. Department of Justice (DOJ) announced a $3.2 million settlement agreement with Artificial Intelligence (AI) company OpenAI for allegedly discriminating against American workers by outsourcing foreign labor through the PERM process.
The agreement comes after the DOJ’s Civil Rights Division’s Immigrant and Employee Rights Section (IER) launched an investigation in Aug. 2025 into OpenAI’s alleged violations of the Immigration and Nationality Act (INA).
OpenAI's Deliberate Efforts
According to court documents, OpenAI was accused of engaging in “citizenship status discrimination in recruitment and hiring related to permanent labor certification (“PERM”).”
The IER found that OpenAI did not promote available job positions that it sought to fill through the Program Electronic Review Management (PERM) labor certification system on its external job platform.
“OpenAI also required applicants to mail paper applications for positions advertised as part of PERM recruitment, even though the company permitted electronic applications for other positions,” the DOJ wrote.
DOJ Affirms Justice Against Unfair Treatment
“It is illegal to discriminate against U.S. workers by preferring temporary visa holders for jobs,” DOJ Civil Rights Division Assistant Attorney General Harmeet K. Dhillon affirmed. “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 agreement orders OpenAI to pay $1.2 million in civil penalties, establish a $2 million back-pay fund for victims of the discriminatory practices, and requires the AI company to reverse its malpractices.
Rick Scott's Efforts To Combat Discriminatory Practices
In an effort to combat discrimination against U.S. workers, Sen. Rick Scott (R-Fla.) recently introduced the American Hiring Transparency Act.
The bill aims to impose a $10,000 fee on businesses that exploit the PERM system for cheaper labor by sponsoring Permanent Resident Cards for foreign workers.
It also attempts to crack down on PERM certification loopholes, such as OpenAI’s failure to promote available job positions online, advertising on the radio during unpopular times, or enforcing paper mail job applications.
