Trump’s DOJ gains oversight of OpenAI’s green-card employee sponsorships

OpenAI has agreed to pay $3.2 million to resolve allegations brought by the U.S. Department of Justice (DOJ) that it favored foreign workers over American applicants in certain job placements. The settlement comes after the DOJ accused OpenAI and its former subsidiary, Statsig, of violating immigration laws by discouraging U.S. citizens from applying for positions covered under the Permanent Employment-Based Visa Program, known as PERM. The agreement was reached following an investigation that spanned several years and included multiple instances of alleged misconduct. The DOJ's Civil Rights Division announced the resolution on Wednesday, revealing that the companies had agreed to a three-year oversight period during which they will be monitored for compliance with federal hiring regulations. Under the terms of the settlement, OpenAI and Statsig must pay a $1.2 million fine and allocate $2 million toward potential restitution for affected U.S. citizens. The restitution fund will be used to compensate individuals who may have been unfairly disadvantaged by the companies' alleged actions. While neither company admitted to wrongdoing, they accepted responsibility for adhering to the legal requirements surrounding the sponsorship of permanent resident visas. According to the DOJ, the companies engaged in practices that allegedly violated the Immigration and Nationality Act (INA). These included failing to publicly post job openings on standard job boards, advertising during hours when few Americans might be available to apply, and requiring paper-based applications instead of digital submissions. The DOJ argued that these strategies effectively limited access to job opportunities for U.S. citizens, thereby undermining the intent of the INA, which mandates that employers seek qualified domestic candidates before pursuing visa sponsorship. The case involves two entities, OpenAI and Statsig, though the latter was previously a separate company before being acquired by OpenAI in September 2025. At least part of Statsig was later sold back to its original owners in May 2026. Despite this change in ownership, the DOJ initiated its investigation into both companies independently, beginning in August 2025. The agency cited five separate incidents involving OpenAI between 2023 and 2025, along with one incident related to Statsig. This settlement marks another step in the DOJ’s broader enforcement efforts regarding employment-related immigration issues. The INA, enacted in 1952, has historically been used to hold large technology firms accountable for non-compliance. For example, during the Biden administration, both Facebook and Apple faced similar settlements, though those cases involved more extensive and systemic violations. The current case, while smaller in scale, reflects a continued focus on ensuring fair access to employment opportunities for U.S. citizens. Under the oversight conditions outlined in the settlement, OpenAI and Statsig will be required to draft and obtain approval for their PERM-related hiring policies. They will also need to submit detailed semiannual reports containing data on the number of applications submitted for foreign employees, the number of U.S. citizens interviewed, and other relevant metrics. These measures aim to ensure transparency and adherence to federal labor standards.