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OpenAI to pay $3.2m to settle US worker discrimination claims

OpenAI and a subsidiary will pay $3.2 million to settle US government claims of favouring foreign workers over US job applicants.

  • OpenAI and its subsidiary Statsig will pay $3.2 million.
  • The settlement addresses claims of discrimination against US job applicants.
  • The US Justice Department alleged violations of the Immigration and Nationality Act.

OpenAI and its subsidiary, Statsig, are set to pay $3.2 million to resolve claims from the US government that they favoured foreign workers with temporary employment visas, discriminating against US job applicants in recruitment and hiring. The US Justice Department announced the settlement on Tuesday.

The Justice Department stated that OpenAI and Statsig, a product development software company, recruited foreign workers for certain roles and took steps to deter US workers from applying. These steps reportedly included requiring paper applications instead of electronic submissions, advertising jobs late at night on the radio, and not posting openings on an external website.

The settlement includes $1.2 million in penalties and $2 million designated to compensate alleged victims of discrimination. OpenAI has also agreed to revise its employment policies, conduct training, and be subject to monitoring by the Justice Department. The company denied wrongdoing in the settlement agreement.

Why this matters: This substantial settlement highlights US government efforts to ensure fair employment opportunities for US workers in the technology sector.

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