Instacart to Pay $5 Million After DOJ Says It Favored Foreign Workers Over Americans

Instacart to Pay $5 Million After DOJ Says It Favored Foreign Workers Over Americans

Instacart has agreed to pay $5 million to settle federal allegations that it discriminated against American workers in its hiring practices, the Justice Department and the Equal Employment Opportunity Commission announced Tuesday.

The agencies said Instacart's parent company, Maplebear, abused the Permanent Labor Certification (PERM) program, which lets employers sponsor foreign workers for green cards after making a good-faith effort to hire US workers. Investigators found Instacart required American applicants to physically mail applications for PERM-linked jobs, while its normal hiring process accepts electronic applications — an unfair burden, the government said.

Of the $5 million, $1 million is a civil penalty paid to the United States and up to $4 million goes to people who applied or were deterred from applying between December 2023 and February 2026. The company also agreed to post PERM-linked jobs publicly and accept electronic applications from Americans.

Instacart said its practices complied with the law but settled to stay focused on its business. It is the 15th such settlement under the DOJ's worker-protection initiative, following a $3.2 million deal with OpenAI in August, Apple's $25 million settlement in 2023 and Facebook's $14 million in 2021.

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