Instacart reaches $5 million settlement over alleged discrimination against American workers
Popular grocery delivery company Instacart has reached a multimillion-dollar settlement with the US Department of Justice after being accused of discriminating against American workers.
The Justice Department's Civil Rights Division said it has reached a $5 million settlement with Maplebear Inc., which operates the delivery service. The resolution addresses allegations that the company purposefully discriminated against US and American workers based on country of origin, in violation of the Immigration and Nationality Act and Title VII of the Civil Rights Act of 1964.
According to the Justice Department, the company was abusing the Permanent Labor Certification (PERM) process by placing undue burdens on American applicants, requiring them to physically mail applications and deviating from Instacart's standard electronic application process. The scheme occurred from December 2023 through February 2026.
Assistant Attorney General Harmeet K. Dhillon said: 'This significant resolution marks the 15th settlement agreement the Civil Rights Division has reached under my leadership to protect US workers. Our record demonstrates that the Justice Department is holding companies who prefer workers with temporary employment visas accountable. We will not stop fighting for US workers until there is a fair playing field.'
The settlement was secured in conjunction with the US Equal Employment Opportunity Commission (EEOC), which has dubbed the mission 'Project Firewall'.
Under the settlement, Instacart will be required to set up a $4 million fund to compensate applicants who may have been wronged, and to pay another $1 million in civil penalties.
The PERM programme allows employers to sponsor temporary visa workers for permanent residence in the United States. However, companies using it are required to make a good-faith effort to hire American workers before resorting to foreigners.
According to the Justice Department, companies cannot create additional burdens for US workers, publish job advertisements that disfavour them, or use processes that tend to deprive US applicants of employment opportunities.
The settlement is the 15th of its kind since President Donald Trump began his second term in January 2025, and is part of a broader effort to ensure American workers are not illegally discriminated against.
EEOC chair Andrea Lucas said: 'Today's settlement makes clear that when employers erect unlawful barriers that harm American workers, the EEOC will act decisively. Discrimination against workers based on their American national origin has no place in our economy.'
An Instacart spokesperson said the company is a US-based grocery technology platform employing thousands of American workers and serving millions of customers, retailers, shoppers and brands, and that it encourages qualified US jobseekers to apply. The spokesperson said the company maintains its practices complied with all applicable laws, but is pleased to have resolved the matter so it can keep its full focus on its mission.
