Instacart to Pay $5 Million to Settle DOJ, EEOC Claims It Favored Visa Workers Over Americans

Instacart will pay $5 million to settle federal allegations that it discriminated against American workers while sponsoring foreign workers for green cards, the Justice Department announced Tuesday.

The department's Civil Rights Division and the U.S. Equal Employment Opportunity Commission reached the settlement with Maplebear Inc., the San Francisco-based company that does business as Instacart. Fox News first reported the deal.

The agencies alleged that Instacart discriminated against U.S. workers based on citizenship status and national origin, in violation of the Immigration and Nationality Act and Title VII of the Civil Rights Act of 1964, according to the Justice Department.

What the Government Alleged

The case centers on the Permanent Labor Certification process, known as PERM. It lets employers sponsor temporary visa holders for permanent residence, but only after a good-faith effort to recruit U.S. workers for the job.

According to the Justice Department, Instacart required applicants for jobs advertised as part of PERM recruitment to physically mail their applications. That departed from the company's standard process, which accepted electronic applications, the department said. "As a result, many of the U.S. workers who applied were not timely considered," the release says.

The department said the agencies "uncovered evidence" that the hiring practices "intentionally discriminated against U.S. and American workers by preferring workers with temporary employment visas." The alleged conduct ran from December 2023 to February 2026, according to the release.

What Instacart Agreed To

Under the settlement, Instacart will set up a fund of up to $4 million to compensate affected applicants, including people who were discouraged from applying, and will pay $1 million in civil penalties to the United States, the Justice Department said.

The company must also post PERM positions on its public careers website, accept electronic applications, train staff, revise its employment policies and submit to monitoring and reporting, according to the release. The agencies asked people who believe they were affected to email Instacart@eeoc.gov until a claims administrator sets up a contact.

"This significant resolution marks the fifteenth settlement agreement the Civil Rights Division has reached under my leadership to protect U.S. workers," said Assistant Attorney General Harmeet K. Dhillon. "We will not stop fighting for U.S. workers until there is a fair playing field."

EEOC Chair Andrea Lucas said in the release that "when employers erect unlawful barriers that harm American workers, the EEOC will act decisively."

What Instacart Says

Instacart said it followed the law. "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," a spokesperson told Fox News Digital.

"While we maintain that our practices complied with all applicable laws and regulations, we're pleased to have resolved this matter so we can keep our full focus on delivering on our mission for customers, shoppers, retailers and brands," the company said, according to Fox.

The 15th Such Settlement

The Justice Department said this is the 15th settlement since it relaunched its Protecting U.S. Workers Initiative in 2025. Since the initiative first launched during President Donald Trump's first term, the department says it has secured more than $34 million in back pay for U.S. workers and more than $16 million in civil penalties.

For the EEOC, this is the fourth public settlement since 2025 involving discrimination against workers of American national origin, and five more such lawsuits are pending in federal court, according to the release. The EEOC calls the effort "Project Firewall," Fox News reported.

Hold Everyone Accountable.

Sources: U.S. Department of Justice, "Civil Rights Division and Equal Employment Opportunity Commission Secure $5,000,000 Joint Settlement" (Oct. 20, 2026): https://www.justice.gov/opa/pr/civil-rights-division-and-equal-employment-opportunity-commission-secure-5000000-joint ; DOJ settlement summary: https://www.justice.gov/crt/media/1466996/dl ; Fox News: https://www.foxnews.com/politics/food-delivery-favorite-forced-fork-over-millions-doj-alleged-discrimination-american-workers