OpenAI is hiring, not following usual practices by posting positions on the official website, requiring paper applications, and advertising on late-night radio
The U.S. Department of Justice announced that OpenAI and its subsidiaries have reached a settlement for $3.2 million due to discrimination against U.S. workers in the PERM green card process, favoring temporary visa holders.
The investigation found that the company did not post relevant positions on its official website, required paper applications, and advertised on late-night radio, involving fewer than 10 positions.
According to the official announcement from the U.S. Department of Justice on August 4, 2026, OpenAI and its subsidiaries were found to have discriminated against U.S. workers and favored temporary visa holders by not following the usual practice of posting positions on their official website, requiring paper applications (other positions accepted electronic applications), and advertising on late-night radio during the PERM green card recruitment process.
The total settlement amount is $3.2 million ($1.2 million civil penalty paid to the government + $2 million compensation fund). The positions involved are fewer than 10. OpenAI denies any wrongdoing but agrees to the settlement, committing to post positions on its official website and accept electronic applications in the future, as well as to accept oversight.
This incident is expected to increase compliance costs for tech companies in PERM recruitment, benefiting local applicants while putting short-term pressure on the green card pathways for foreign employees.
Source: Public Information
ABAB AI Insight
The PERM process requires employers to prove they cannot find qualified U.S. workers before applying for green cards for foreign employees; OpenAI is accused of reducing the response rate of U.S. applicants through unconventional recruitment methods. The Department of Justice's Civil Rights Division emphasized that this action violates the anti-discrimination provisions of the Immigration and Nationality Act.
On the capital front, the company quickly settled the case and committed to improvements (posting on the official website + accepting electronic applications), motivated by the need to continue supporting green card applications for key talent; resources are shifting from evasive recruitment to open compliance processes, while also paying fines and compensation funds.
Similar cases have been seen with other tech companies being investigated for their advertising and application methods during the H-1B and PERM processes; the current phase involves increased scrutiny of foreign recruitment in the tech industry in the U.S.
This essentially reflects a regulatory change: the PERM recruitment process is shifting from formal compliance to substantive fair competition, with the mechanism being to force companies to eliminate barrier-like application requirements through fines and oversight.
ABAB News · Cognitive Law
Unconventional recruitment methods will ultimately reveal true intentions
Compliance costs are often lower than long-term regulatory risks
The burden of proof in the green card process drives open competition