Trump's DOJ Secures Oversight of OpenAI's Green-Card Sponsorship Practices

dojemployment discriminationgreen-card sponsorshipsimmigration and nationality actopenaioversightpermsettlementstatsigus workers

The U.S. Department of Justice's Civil Rights Division announced on Wednesday that OpenAI and its former subsidiary Statsig have signed a settlement agreement, placing the AI lab's hiring practices under federal oversight for three years. The action marks a significant step in the Trump administration's broader crackdown on alleged employment discrimination in green-card sponsorship processes.

The DOJ had accused OpenAI and Statsig of employing tactics to discourage U.S. citizens from applying for jobs that were being filled by immigrant workers for whom the companies were sponsoring permanent residency. The companies did not admit any wrongdoing but agreed to pay $3.2 million—$1.2 million in fines and $2 million set aside for restitution to U.S. citizens who may have been denied fair consideration for these roles.

Allegations Under the Immigration and Nationality Act

Specifically, the DOJ alleged that the companies violated the Immigration and Nationality Act (INA) by failing to genuinely recruit qualified U.S. workers for certain positions before submitting applications for permanent labor certification (PERM). The investigation found that the companies used practices such as: omitting job listings from public boards, running late-night radio advertisements, and requiring paper applications instead of electronic submissions—all of which effectively discouraged U.S. citizens from applying.

Although fewer than 10 positions were involved, the settlement mandates that OpenAI and Statsig undergo department oversight of their PERM processes. This includes drafting and obtaining approval for their hiring policies related to PERM roles, and submitting semi-annual reports detailing the number of foreign employee sponsorship applications, the number of U.S. citizens interviewed, and other relevant statistics.

Context and Enforcement Timeline

OpenAI acquired Statsig, an AI A/B testing company, in September 2025, and later divested at least part of the business in May 2026. However, the DOJ began investigating the two companies separately in August 2025, prior to the acquisition. The cases involve five incidents at OpenAI between 2023 and 2025, and one at Statsig.

This settlement aligns with the Trump administration's intensified enforcement of federal immigration and labor laws, particularly around PERM. While the INA has been on the books since 1952, it has been enforced against other major tech companies in the past. During the Biden administration, for example, both Facebook and Apple entered into similar agreements, though those cases involved allegations of widespread and systemic discrimination.

As of 2026, the tech industry continues to face heightened scrutiny over visa sponsorship practices, and this settlement serves as a reminder to employers that compliance with INA's recruitment requirements is not optional.

via TechCrunch Startups

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