Instacart Agrees to $5 Million Settlement Over Alleged Discrimination Against U.S. Workers

The U.S. Department of Justice (DOJ) Civil Rights Division and the U.S. Equal Employment Opportunity Commission (EEOC) have secured a $5 million settlement with Maplebear Inc., doing business as Instacart, over allegations of discrimination against U.S. workers based on citizenship status and national origin. The San Francisco, California-based online delivery service allegedly favored workers with temporary employment visas during recruitment conducted under the Permanent Labor Certification (PERM) process. Investigators found that Instacart required applicants for certain positions to submit applications by physical mail, departing from its standard electronic application process and creating additional barriers for U.S. workers. Under the agreement, Instacart must pay $1 million in civil penalties and implement recruitment, training, policy, monitoring, and reporting measures.

Key Details of the Instacart Settlement

Allegations of Discrimination in Instacart’s Hiring Practices

Preference for Temporary Employment Visa Holders

The DOJ and EEOC investigated Instacart’s recruitment and hiring practices associated with the PERM process. The agencies uncovered evidence that the company intentionally discriminated against U.S. workers by favoring individuals with temporary employment visas.

The alleged conduct implicated two federal laws:

• Immigration and Nationality Act (INA): Prohibits unlawful discrimination based on citizenship status in covered employment practices.
• Title VII of the Civil Rights Act of 1964: Prohibits employment discrimination based on national origin, among other protected characteristics.

The agencies said the recruitment practices created unequal opportunities for U.S. workers seeking positions advertised through the PERM process.

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Physical-Mail Applications Created Additional Barriers

The Justice Department found that Instacart required applications for certain PERM-related job openings to be physically mailed. This differed from the company’s standard recruitment procedures, which permitted candidates to apply electronically.

According to the investigation, the additional burden meant that many U.S. workers who applied were not considered in a timely manner. The EEOC uncovered similar evidence during its investigation.

The agencies alleged that these practices disadvantaged U.S. applicants while giving preferential treatment to workers holding temporary employment visas.

Settlement Terms and Required Compliance Measures

$5 Million Resolution and Civil Penalties

The joint settlement totals $5 million. Of that amount, Instacart is required to pay $1 million in civil penalties to the United States.

The agreement also requires the company to change its recruitment practices and strengthen its safeguards against future discrimination. These measures are intended to ensure that U.S. workers receive fair opportunities to apply for jobs advertised through the PERM recruitment process.

Mandatory Changes to Recruitment Practices

Under the settlement, Instacart must take several corrective actions:

1. Public job advertisements: Post relevant positions on its public career website as part of PERM recruitment.
2. Electronic applications: Accept electronic applications from U.S. workers rather than imposing the additional burden of physical-mail submissions.
3. Employee and recruiter training: Train relevant personnel on the company’s anti-discrimination obligations.
4. Employment policy revisions: Update policies to address the identified discrimination concerns.
5. Monitoring and reporting: Comply with oversight and reporting requirements designed to prevent future violations.

These obligations are intended to improve transparency and ensure that recruitment procedures do not unlawfully disadvantage U.S. workers.

Understanding the PERM Program and Employer Obligations

Purpose of Permanent Labor Certification

The Permanent Labor Certification program allows employers to sponsor certain foreign workers for permanent resident status after conducting good-faith recruitment to determine whether qualified U.S. workers are available for the relevant positions.

During this recruitment process, employers must comply with applicable federal anti-discrimination requirements. They cannot unlawfully favor temporary visa holders by creating additional barriers for U.S. applicants.

Recruitment Practices That Can Violate Federal Law

The DOJ explained that employers participating in the PERM process must not engage in practices that unlawfully restrict U.S. workers’ access to employment opportunities. Prohibited conduct can include:

• Creating additional application requirements that disadvantage U.S. workers.
• Publishing advertisements that disfavor, limit, specify, or otherwise discriminate against U.S. workers.
• Using recruitment processes that limit, segregate, or classify applicants in ways that tend to deprive U.S. applicants of employment opportunities.
• Restricting consideration for job opportunities based on citizenship status without a lawful reason.

The Instacart settlement reinforces the agencies’ position that employers must conduct PERM recruitment fairly and cannot use application procedures to favor foreign workers over U.S. applicants in violation of federal law.

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DOJ’s Protecting U.S. Workers Initiative

Fifteenth Settlement Since the Initiative’s 2025 Relaunch

The Instacart agreement is the fifteenth settlement reached by the Justice Department since it relaunched its Protecting U.S. Workers Initiative in 2025. The initiative seeks to enforce the INA’s prohibition on citizenship-status discrimination against employers that unlawfully favor workers with employment visas over U.S. workers.

Assistant Attorney General Harmeet K. Dhillon of the DOJ Civil Rights Division described the resolution as the fifteenth settlement under her leadership aimed at protecting U.S. workers. She stated that the department would continue pursuing employers that favor temporary employment visa holders unlawfully.

Enforcement Record and Financial Penalties

Since the initiative’s original launch during President Trump’s first administration, the Justice Department has secured:

• More than $34 million in back pay for U.S. workers.
• More than $16 million in civil penalties from employers that discriminated against U.S. workers.

Under these settlements, the department obtains civil penalties for violations and continues to seek the maximum penalties permitted by law. Back-pay awards are also pursued when warranted.

The agreements require employers to provide comprehensive training for relevant staff and recruiters and to stop unlawfully restricting job consideration based on citizenship status.

EEOC’s Project Firewall and National Origin Discrimination Enforcement

Protecting American Workers Under Title VII

The EEOC is addressing discrimination against workers of American national origin through its work under Project Firewall. The initiative includes enforcement of Title VII against employers alleged to have unlawfully favored foreign workers over workers of American national origin.

EEOC Chair Andrea Lucas said the settlement demonstrates that the agency will act when employers establish unlawful barriers that harm American workers. She emphasized the agency’s commitment to holding companies accountable when they deny equal employment opportunities by preferring temporary visa holders.

Fourth Public Settlement Since 2025

The Instacart agreement is the fourth public settlement reached by the EEOC involving alleged discrimination against workers of American national origin since 2025. The agency also has five lawsuits involving such allegations currently pending in federal court.

The settlement therefore forms part of broader federal enforcement efforts targeting alleged discrimination in recruitment and hiring practices involving foreign workers and U.S. applicants.

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Official Statements and Enforcement Implications

The DOJ and EEOC emphasized that employers must provide equal employment opportunities and comply with federal anti-discrimination laws when recruiting workers through the PERM program.

The settlement also reflects coordination between the agencies in investigating hiring practices that may violate both citizenship-status and national-origin protections.

Instacart’s required changes to application procedures, employment policies, employee training, monitoring, and reporting are intended to prevent similar conduct in the future.

Conclusion

The $5 million settlement with Maplebear Inc., doing business as Instacart, addresses allegations that the company favored temporary employment visa holders and imposed additional application barriers on U.S. workers during PERM recruitment. The agreement requires $1 million in civil penalties, electronic application options, public job postings, updated employment policies, staff training, and ongoing monitoring and reporting.

The resolution marks the fifteenth settlement under the DOJ’s Protecting U.S. Workers Initiative since its 2025 relaunch and the fourth public EEOC settlement involving alleged discrimination against workers of American national origin since 2025. Both agencies have reiterated their commitment to enforcing federal protections and ensuring fair access to employment opportunities.

To read the original order please visit DOJ (Department of Justice) website.