Instacart to Pay $5 Million Over Claims It Favored Visa Holders in Hiring
Instacart has agreed to pay $5 million to settle federal claims that it made it harder for U.S. workers to land certain jobs at the company while favoring workers on temporary visas.
The Justice Department's Civil Rights Division and the Equal Employment Opportunity Commission announced the settlement Tuesday with Maplebear Inc., the San Francisco-based company that runs Instacart, according to the Justice Department.
What Instacart Was Accused Of
The case centers on a federal program called the Permanent Labor Certification process, known as PERM. It allows employers to sponsor foreign workers who hold temporary visas for permanent residency, or a green card. But first, the company must make a good-faith effort to hire U.S. workers for the job.
Federal officials said Instacart did not hold up its end of that bargain. For jobs advertised through PERM, the company required applicants to physically mail in their applications. For its regular job listings, it accepted applications online.
That extra hurdle meant many U.S. workers who applied were not considered in time, the agencies said. Officials found the company's practices intentionally discriminated against U.S. workers based on citizenship status and national origin, in violation of the Immigration and Nationality Act and Title VII of the Civil Rights Act of 1964.
Where the $5 Million Goes
Under the settlement, Instacart will put up to $4 million into a fund to compensate job seekers who applied, or who were discouraged from applying, between December 2023 and February 2026. A claims administrator will decide who is eligible for back pay and damages.
The company will also pay $1 million in civil penalties to the federal government.
Instacart must also make changes to how it hires. It will have to post PERM jobs on its public career website, accept applications electronically, train its staff on anti-discrimination rules, revise its employment policies and submit to government monitoring.
What Officials and Instacart Said
"We will not stop fighting for U.S. workers until there is a fair playing field," said Assistant Attorney General Harmeet K. Dhillon, who noted that this is the 15th settlement of its kind the Civil Rights Division has reached under her leadership.
EEOC Chair Andrea Lucas said the agency will act decisively when employers create unlawful barriers that harm American workers.
Instacart said its hiring practices followed U.S. laws and regulations, but that it agreed to settle so it could stay focused on its business, The Associated Press reported.
"Hiring and investing in American workers across our U.S. business is our priority," the company said.
Not the First Tech Company to Settle
Instacart is the latest tech company to settle similar claims. Apple agreed to a $25 million settlement in 2023 over hiring practices that discriminated against U.S. candidates, and Facebook agreed to pay $14 million in 2021, according to the AP.
The settlement comes as the Trump administration ramps up scrutiny of how companies use foreign worker programs. Earlier this month, the White House suspended Microsoft and several IT firms from a key green card program, accusing them of abusing the system at the expense of American workers.
It is also the latest legal headache for a delivery app. DoorDash recently agreed to pay $131.5 million to settle claims that it underpaid delivery workers in New York City. Instacart itself drew attention last year over a report that shoppers were charged different prices for the same groceries.
How to File a Claim
People who applied for an Instacart job, or were discouraged from applying, between December 2023 and February 2026 and believe they were affected can email Instacart@eeoc.gov. The agencies will pass the information along until the claims administrator sets up its own contact. Workers with general questions can also call the Justice Department's worker hotline at 1-800-255-7688.
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