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OpenAI and Statsig to pay $3.2m to settle US worker discrimination claims
The settlement includes $1.2 million in penalties and $2.0 million to compensate alleged victims, and the Justice Department alleged OpenAI discouraged US applicants through steps like requiring paper applications and late-night radio ads.
OpenAI and its subsidiary Statsig agreed to pay $3.2 million to settle US government claims that they discouraged US workers from applying and favored foreign workers in hiring, the US Justice Department said Tuesday. The department alleged the companies recruited foreign workers for some open positions and took steps to discourage US applicants.
According to the Justice Department, those steps included requiring applicants to mail paper applications instead of submitting electronically, advertising jobs on the radio late at night, and not posting the openings on an external website. The department said OpenAI did not immediately respond to a request for comment, and the company denied wrongdoing in the settlement agreement.
The Justice Department alleged that both companies violated the federal Immigration and Nationality Act, which bars discrimination based on citizenship. It said there were fewer than 10 positions at issue, but that the settlement amount reflected the harm to US workers.
The settlement includes $1.2 million in penalties and $2.0 million to compensate alleged victims of discrimination. The department said it has announced at least a dozen other settlements since last year involving alleged discrimination against US workers, and a statement from assistant attorney general Harmeet Dhillon said the settlement requires changes to OpenAI’s recruitment practices.