OpenAI Agrees to $3.2 Million Settlement Over U.S. Hiring Discrimination Charges
OpenAI and one of its subsidiaries have agreed to pay $3.2 million to settle U.S. government allegations that they favored temporary foreign visa holders and discriminated against American applicants in their hiring processes, the Department of Justice (DOJ) announced on Tuesday.
The Justice Department detailed that OpenAI and the company "Statsig" took deliberate steps to deter U.S. citizens from applying for job vacancies. These tactics allegedly included requiring applicants to submit paper applications via postal mail instead of applying online, and broadcasting job advertisements on late-night radio rather than listing them on external job websites.
Under the settlement agreement, OpenAI denied any wrongdoing. The case stands out as the most prominent among more than a dozen settlements recently announced by the DOJ against technology firms accused of engaging in similar discriminatory practices.
The Justice Department noted that although the case involves fewer than 10 job openings, the substantial size of the settlement reflects the severity of the harm caused by such practices. The $3.2 million agreement includes $1.2 million in civil penalties, in addition to $2 million in compensation for the affected individuals.