Instacart Agrees to $5 Million Settlement Over Allegations of Discriminating Against U.S. Workers

Popular grocery delivery company Instacart has agreed to a $5 million settlement with the Department of Justice (DOJ) to resolve allegations that it discriminated against American workers in violation of federal law. The DOJ's Civil Rights Division stated that the company, operating as Maplebear Inc., engaged in national origin discrimination against U.S. workers.

The settlement addresses claims that Instacart abused the Permanent Labor Certification (PERM) process by imposing undue burdens on American applicants, such as requiring them to physically mail applications, which deviated from the company's standard electronic process. This alleged scheme occurred between December 2023 and February 2026.

According to the DOJ, the company's actions violated the Immigration and Nationality Act (INA) and Title VII of the Civil Rights Act of 1964. Assistant Attorney General Harmeet K. Dhillon emphasized the Justice Department's commitment to protecting U.S. workers, stating, "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 settlement includes a $4 million fund to compensate applicants who may have been wronged and $1 million in civil penalties. The resolution was secured in conjunction with the U.S. Equal Employment Opportunity Commission (EEOC), which has dubbed this enforcement initiative "Project Firewall."

The PERM program allows employers to sponsor temporary visa workers for permanent U.S. residency. However, companies utilizing this program are required to make a good-faith effort to hire American workers first. The DOJ guidance states that companies cannot create additional burdens for U.S. workers, issue job advertisements that disfavor American applicants, or use processes that discriminate against them.

This settlement marks the 15th such agreement reached by the Civil Rights Division under the current administration. Andrea Lucas, chair of the EEOC, commented, "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."

An Instacart spokesperson told Fox News Digital, "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 added, "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."