Delivery Company Pays $5M to Settle Immigration Case

Instacart will pay $5 million to resolve federal allegations that it discriminated against U.S. workers, the U.S. Department of Justice and the Equal Employment Opportunity Commission announced Oct. 20.

The agencies said Maplebear Inc., which does business as Instacart, violated the Immigration and Nationality Act and Title VII of the Civil Rights Act of 1964 during recruitment tied to green card sponsorship.

Investigators concluded the San Francisco-based delivery company’s hiring practices discriminated based on citizenship status and national origin.

They found its recruitment in the Permanent Labor Certification process intentionally preferred workers on temporary visas.

The PERM program lets employers sponsor temporary visa holders for permanent residency, provided they first recruit in good faith for U.S. workers.

During that process, employers cannot create extra burdens for U.S. applicants, run job ads that disfavor them, or use procedures that screen them out.

Settlement

Federal investigators found Instacart required applications for PERM-advertised jobs to be physically mailed.

The company’s standard recruitment process accepted electronic applications. As a result, many U.S. applicants were not considered in a timely manner, the agencies said.

Instacart will create a settlement fund of up to $4 million for applicants, including those deterred from applying, who were affected between December 2023 and February 2026.

The company will also pay $1 million in civil penalties.

A claims administrator will determine eligibility for back pay and compensatory damages. The company will also pay $1 million in civil penalties to the federal government.

The agreement requires Instacart to post PERM positions on its public career website and accept electronic applications.

It must also train personnel on anti-discrimination obligations, revise its employment policies, and comply with monitoring and reporting requirements.

Broader Enforcement Push

Justice Department officials said this is the 15th settlement under the Protecting U.S. Workers Initiative, which the department relaunched in 2025.

Since the initiative’s original launch during the first Trump administration, the department has recovered more than $34 million in back pay and over $16 million in civil penalties.

Justice Department officials said this is the 15th settlement under the Protecting U.S. Workers Initiative.

The EEOC called the case its fourth public settlement over “anti-American” national origin discrimination since 2025, part of its Project Firewall effort.

Five related lawsuits remain pending in federal court.

EEOC chair Andrea Lucas said the agency will act decisively when employers put up unlawful barriers to American workers.

What Employers Should Know

Employers that sponsor foreign workers for permanent residency should review their PERM recruitment practices now.

Key steps include:

• Making sure PERM-related openings are publicly posted and accept applications the same way as other jobs
• Avoiding ad language or screening steps that disfavor U.S. applicants
• Training HR staff and recruiters on citizenship status and national origin protections
• Documenting recruitment efforts and the reasons for hiring decisions