Instacart settles federal claims of discrimination against US job seekers

SAN FRANCISCO — Instacart parent Maplebear Inc. has agreed to pay $5 million to settle allegations that it discriminated against U.S. workers by preferring to instead hire people with temporary work visas.

An agreement announced this week by the Department of Justice and the Equal Employment Opportunity Commission requires Instacart to pay a $1 million civil penalty and establish a $4 million fund to compensate “applicants affected by the discriminatory practices,” which allegedly occurred between December 2023 and February 2026, according to the agencies.

“Our record demonstrates that the Justice Department is holding companies who prefer workers with temporary employment visas accountable,” said assistant attorney general Harmeet Dhillon. “We will not stop fighting for U.S. workers until there is a fair playing field.”

The agencies said Instacart was advertising jobs through the Permanent Labor Certification, or PERM, program, which lets employers hire temporary visa holders and sponsor them for permanent resident status as long as they have also made a good-faith effort to hire U.S. workers.

The agencies alleged that this created a burden for U.S. workers by requiring applications to be mailed to the company for jobs listed as part of its PERM recruitment program. Instacart allows electronic applications for its standard job recruitment process.

Following the settlement, Instacart said in a statement that its hiring practices complied with U.S. laws and regulations, but it agreed to the settlement to stay focused on its business.

“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,” the company said. “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.”

Instacart is not the first tech company to settle with the government over allegations that it favors foreign workers for certain jobs. Facebook and Apple have also settled U.S. claims related to their hiring practices.