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DOJ challenges employer PERM recruiting process

September 2026 federal employment law insider
Authors: 

the editors of FELI

On August 4, 2026, the Department of Justice (DOJ) announced the latest settlement challenging employers’ PERM recruiting processes. OpenAI and its subsidiary Statsig LLC agreed to settle allegations that they violated the Immigration and Nationality Act and to pay $3.2 million—$1.2M in civil penalties and $2M in backpay. This is the latest in a series of 13 settlements over the past 18 months under the DOJ’s Protecting U.S. Workers Initiative alleging companies hiring employees under H-1B visas are discriminating against American workers. 

Settlements on violating PERM requirements 

The legal thread to these cases is that the Department of Labor’s (DOL) regulation requires PERM recruitment to be conducted in good faith and in a manner consistent with how the employers normally recruit for non-PERM roles. The DOJ has alleged that companies’ PERM recruiting process was harder, different, or broken for outside candidates and as a result represented strong evidence of an intent to discourage U.S. citizens from applying. 

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