OpenAI and Statsig Reach $3.2 Million Settlement With US Justice Department Over Hiring Practices

OpenAI and its former subsidiary Statsig have entered into a settlement agreement with the U.S. Department of Justice (DOJ) Civil Rights Division, resolving allegations concerning their hiring practices for roles linked to permanent residency sponsorships.

What Happened

The Justice Department announced that OpenAI and Statsig signed a settlement establishing three years of government oversight over their recruitment processes for permanent residency (PERM) roles. According to the DOJ, the companies engaged in tactics aimed at deterring qualified U.S. citizens from applying for positions occupied by immigrant employees being sponsored for green cards.

As part of the agreement, the companies did not admit to any wrongdoing. However, they agreed to a financial settlement totaling $3.2 million. This includes a $1.2 million civil penalty and a $2 million restitution fund designated for any qualified U.S. citizens identified by the DOJ who were adversely affected by these hiring practices.

Key Highlights

• Financial Terms: A total payout of $3.2 million, divided into a $1.2 million fine and $2 million reserved for potential restitution.
• Settlement Oversight: The DOJ will maintain oversight of PERM-related hiring policies for three years.
• Alleged Violations: The DOJ alleged breaches of the Immigration and Nationality Act (INA) involving fewer than 10 specific positions.
• Reported Practices: Alleged deterrence tactics included broadcasting recruitment advertisements on late-night radio, avoiding public job boards, and requiring paper applications rather than standard digital submissions.
• Reporting Requirements: Both companies must formulate compliant PERM hiring policies, obtain DOJ approval, and submit semiannual reports documenting foreign worker applications, U.S. citizen interview numbers, and related hiring data.
• Investigation Timeline: The DOJ began its inquiries in August 2025 before OpenAI acquired Statsig in September 2025. The investigation covered five instances at OpenAI between 2023 and 2025, and one at Statsig. OpenAI later divested at least part of Statsig in May 2026.

Why This Matters

Under the Immigration and Nationality Act of 1952, employers sponsoring foreign workers for permanent residency are legally required to conduct genuine recruitment efforts to identify qualified U.S. citizens before seeking green cards. The DOJ identified this enforcement action as part of an increased regulatory focus on corporate recruitment compliance. Similar settlements under the INA were previously reached by other major technology firms, including Facebook and Apple during the Biden administration, although those earlier actions involved claims of widespread and systematic violations.

What to Watch Next

Over the three-year oversight period, OpenAI and Statsig are required to secure regulatory approval for their revised PERM recruitment policies. The companies will also provide semiannual compliance data to the DOJ, while the government assesses whether any applicants qualify to receive payouts from the $2 million restitution reserve.

Frequently Asked Questions

Did OpenAI or Statsig admit to any wrongdoing?

No. Under the terms of the settlement, neither OpenAI nor Statsig admitted to any legal violations or wrongdoing.

What specific positions were involved in the investigation?

The DOJ’s investigation examined fewer than 10 roles across both companies, encompassing five cases at OpenAI between 2023 and 2025 and one case at Statsig.

What is required under the three-year oversight program?

The companies must draft and implement DOJ-approved recruitment procedures for PERM roles and provide semiannual reports detailing recruitment statistics, foreign sponsorship numbers, and U.S. applicant interview records.

Source: U.S. Department of Justice Civil Rights Division announcement and TechCrunch reporting.