Instacart Settles Discrimination Claims With US Government for $5 Million
The grocery delivery company allegedly discriminated against U.S.-born job seekers by creating barriers in its hiring process.
Instacart has agreed to a $5 million settlement with the federal government to resolve allegations of discrimination against U.S.-born job applicants, the Department of Justice announced.
The settlement addresses claims that Instacart created obstacles for U.S. citizens seeking employment while using a federal program designed to help companies hire foreign workers. The Permanent Labor Certification (PERM) program allows employers to sponsor visa holders for permanent residency, but requires them to make a good-faith effort to recruit U.S. workers first.
According to the Justice Department's Civil Rights Division and the Equal Employment Opportunity Commission, Instacart allegedly required U.S. applicants to physically mail their applications for jobs listed under its PERM recruitment program. This contrasted with Instacart's standard hiring process, which accepted electronic applications.
San Francisco-based Instacart stated that its hiring practices have always complied with U.S. laws and regulations. However, the company agreed to the settlement to maintain its focus on business operations. "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," the company said in a statement.
Instacart is among several technology companies that have faced federal scrutiny over hiring practices that allegedly favor foreign workers. In 2023, Apple settled for $25 million over similar allegations, and Facebook paid $14 million in 2021 to resolve claims concerning its hiring of immigrant workers seeking permanent resident status.
Assistant Attorney General Harmeet K. Dhillon stated, "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 the establishment of a fund of up to $4 million to compensate job applicants who were allegedly harmed or deterred from applying to Instacart between December 2023 and February 2026. Instacart will also pay $1 million in civil penalties to the federal government. The company is now required to post PERM program jobs on its public career website and accept electronic applications for these positions.