DOJ Scrutiny and Settlement: OpenAI’s Green-Card Employee Sponsorships

In August 2026, the U.S. Department of Justice (DOJ) announced a $3.2 million settlement with OpenAI OpCo LLC and its subsidiary, Statsig Inc., resolving allegations of immigration-related recruitment discrimination against U.S. workers.

The enforcement action, brought by the DOJ’s Civil Rights Division through its Immigrant and Employee Rights Section (IER), underscores the federal government’s increased scrutiny of how employers conduct recruitment during the permanent labor certification (PERM) process, a key step in many employment-based green card applications.

Understanding the PERM Recruitment Process

The PERM process allows U.S. employers to sponsor foreign nationals, often working in H-1B or L-1 status, for lawful permanent residence. Before obtaining PERM certification, employers must test the U.S. labor market through prescribed recruitment efforts and determine whether qualified, willing, and available U.S. workers exist for the position.

Federal law requires employers to conduct these recruitment activities in good faith. The DOJ’s Protecting U.S. Workers Initiative enforces anti-discrimination provisions of the Immigration and Nationality Act (INA), which prohibit practices that unlawfully disadvantage U.S. workers during the recruitment process.

Allegations Against OpenAI and Statsig

According to the DOJ, OpenAI and Statsig allegedly implemented recruitment practices that made it more difficult for U.S. workers to discover and apply for positions associated with PERM sponsorship. The government alleged that:

• Applicants for certain PERM-related positions were required to submit applications through physical mail, while other positions allowed electronic applications.
• Some PERM-designated positions were not posted on the companies’ primary public careers websites.
• Certain job advertisements were allegedly placed through less accessible recruiting channels, including late-night radio broadcasts.

Although the investigation involved fewer than ten positions, federal authorities emphasized that recruitment practices that create unnecessary barriers for U.S. workers may violate the INA’s anti-discrimination provisions.

Settlement Terms

The settlement includes:

Key Takeaways for Employers

The settlement serves as a reminder that PERM recruitment procedures must be integrated with broader hiring practices and administered in a manner that provides meaningful access to U.S. applicants.

Employers sponsoring foreign workers should consider the following:

• Recruitment processes used for PERM positions should be consistent with standard hiring practices whenever possible.
• Application procedures should not impose additional barriers that could discourage qualified U.S. workers from applying.
• Recruitment efforts should be designed to attract applicants rather than merely satisfy regulatory requirements.
• Documentation of recruitment activities should demonstrate compliance with both labor certification regulations and applicable anti-discrimination laws.

As demand for highly skilled talent continues to grow, particularly in the technology and artificial intelligence sectors, federal agencies are expected to maintain close oversight of PERM recruitment practices.

Conclusion on PERM Recruitment Compliance

The OpenAI settlement highlights the potential legal, financial, and reputational consequences of deficiencies in PERM recruitment practices. Employers that sponsor foreign workers should regularly review their hiring and labor certification procedures to ensure compliance with immigration and anti-discrimination requirements. Conducting proactive compliance audits and obtaining experienced legal guidance can help organizations reduce risk while maintaining effective global talent strategies.