Instacart has agreed to pay $5 million to settle Justice Department claims that it discriminated against American workers in favor of foreign labor during its hiring process.
The settlement, announced Tuesday by the DOJ’s Civil Rights Division, resolves allegations against Maplebear Inc., the parent company of Instacart, which operates the popular grocery delivery service. Investigators found the company’s conduct violated the Immigration and Nationality Act and Title VII of the Civil Rights Act of 1964.
According to the DOJ, between December 2023 and February 2026, Instacart manipulated the Permanent Labor Certification (PERM) process by requiring American applicants to mail in paper applications rather than apply electronically like everyone else. The PERM program exists to let employers sponsor foreign workers for permanent residency, but only after making a genuine effort to hire qualified Americans first. By burying U.S. applicants in an outdated, inconvenient process, the DOJ alleges Instacart tilted the field toward foreign hires.
Assistant Attorney General Harmeet K. Dhillon called it the 15th settlement her division has reached to protect U.S. workers since she took over leadership there.
“This significant resolution marks the 15th settlement agreement the Civil Rights Division has reached under my leadership to protect U.S. workers. Our record demonstrates that the Justice Department is holding companies who prefer workers with temporary employment visas accountable. We will not stop fighting for U.S. workers until there is a fair playing field.”
Under the deal, Instacart must set up a $4 million fund to compensate applicants harmed by the scheme and pay an additional $1 million in civil penalties.
The Equal Employment Opportunity Commission partnered with the DOJ on the investigation as part of an effort called “Project Firewall.” EEOC Chair Andrea Lucas said the outcome sends a clear message to employers.
“Today’s settlement makes clear that when employers erect unlawful barriers that harm American workers, the EEOC will act decisively. The EEOC is committed to holding companies accountable when they deny equal work opportunities to U.S. workers by preferring temporary visa holders for jobs. Discrimination against workers based on their American national origin has no place in our economy.”
The case lands amid broader scrutiny of foreign worker visa programs under the Trump administration. In September, President Trump signed an executive order requiring federal agencies to check whether companies sponsoring H-1B visas had laid off or planned to lay off American workers as part of their visa filing reviews.
An Instacart spokesperson defended the company’s hiring record while confirming the settlement.
“We’re proud to be a U.S.-based grocery technology platform, employing thousands of American workers and serving millions of customers, retailers, shoppers and brands. We encourage qualified U.S. jobseekers to apply to join our team. Hiring and investing in American workers across our U.S. business is our priority, and we actively promote every role across many channels to ensure qualified U.S. candidates are always first in line for opportunities. While we maintain that our practices complied with all applicable laws and regulations, we’re pleased to have resolved this matter so we can keep our full focus on delivering on our mission for customers, shoppers, retailers and brands.”
The company did not admit wrongdoing as part of the settlement.
