Instacart has agreed to pay $5 million to settle federal allegations that it discriminated against American job applicants while sponsoring foreign workers for permanent residency.
The Justice Department’s Civil Rights Division announced the settlement with Maplebear Inc., the parent company of Instacart, resolving claims that the grocery delivery company violated the Immigration and Nationality Act and Title VII of the Civil Rights Act of 1964.
Investigators said Instacart abused the Permanent Labor Certification process, known as PERM, which requires employers to make a genuine effort to hire qualified American workers before sponsoring visa holders for permanent residency. According to the DOJ, Instacart made it harder for U.S. applicants by requiring them to mail in paper applications, a departure from the company’s normal electronic application system. The practice reportedly ran from December 2023 through February 2026.
Under the settlement, Instacart will set up a $4 million fund to compensate applicants who may have been affected, in addition to paying $1 million in civil penalties.
Assistant Attorney General Harmeet K. Dhillon, who leads the Civil Rights Division, called the agreement the 15th such settlement reached under her leadership.
“This significant resolution marks the 15th settlement agreement the Civil Rights Division has reached under my leadership to protect U.S. workers,” Dhillon said. “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.”
The case was pursued jointly with the U.S. Equal Employment Opportunity Commission as part of an initiative the agency calls “Project Firewall.” EEOC Chair Andrea Lucas said the settlement sends a message to employers.
“Today’s settlement makes clear that when employers erect unlawful barriers that harm American workers, the EEOC will act decisively,” Lucas said. “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 DOJ said employers cannot create extra burdens for U.S. workers, publish job listings that disadvantage them, or use application processes that limit their chances of being hired.
An Instacart spokesperson said the company disputes any wrongdoing but wanted to move past the dispute.
“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,” the spokesperson said. “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 settlement is the latest in a string of similar resolutions the Justice Department has reached with employers since President Donald Trump began his second term in January 2025, part of a broader push to scrutinize how companies use the visa sponsorship process relative to American applicants.
