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Instacart settles federal claims of
discrimination against US-born job seekers
[October 21, 2026]
By DEE-ANN DURBIN
The federal
government has reached a $5 million settlement with Instacart for
allegedly discriminating against U.S.-born workers in its hiring
practices.
According to the U.S. Department of Justice Civil Rights Division and
the Equal Employment Opportunity Commission, Instacart was advertising
jobs through the Permanent Labor Certification, or PERM, program. The
program 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. |
An instacart logo and an instacart webpage are seen in New York, Sept.
6, 2023. (AP Photo/Richard Drew, File) |
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The
agencies said Instacart created a burden for U.S. workers by
requiring that applications be physically mailed to the company
for jobs that were listed as part of its PERM recruitment
program. Instacart allows electronic applications for its
standard job recruitment process.
San Francisco-based Instacart said Tuesday that its hiring
practices complied with U.S. laws and regulations, but it agreed
to the settlement in order to remain 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 the latest tech company to reach a settlement with
the government over allegations that it favors foreign workers
for certain jobs.
In 2023, Apple agreed to a $25 million settlement after federal
regulators said its hiring practices discriminated against U.S.
candidates for jobs that went to immigrant workers seeking
permanent resident status in the country. Facebook agreed to pay
$14 million in 2021 to settle claims about its hiring practices.
“Our record demonstrates that the Justice Department is holding
companies who prefer workers with temporary employment visas
accountable," Assistant Attorney General Harmeet K. Dhillon said
in a statement. "We will not stop fighting for U.S. workers
until there is a fair playing field.”
The settlement requires Instacart to establish a fund of up to
$4 million to compensate job applicants and people who were
allegedly deterred from applying to Instacart between December
2023 and February 2026.
Instacart will pay $1 million in civil penalties to the federal
government. The company is also required to post jobs that are
part of its PERM recruitment program on its public career
website and accept electronic applications.
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