WASHINGTON, D.C. – October 20, 2026 (STL.News) Instacart, the San Francisco-based grocery delivery technology company operated by Maplebear Inc., has agreed to a $5 million settlement with the U.S. Department of Justice (DOJ) and the Equal Employment Opportunity Commission (EEOC) to resolve allegations that its recruitment practices discriminated against American workers in favor of foreign workers holding temporary employment visas.
The settlement, announced Tuesday, October 20, 2026, follows a joint federal investigation into Instacart’s hiring procedures under the Permanent Labor Certification (PERM) program, which allows employers to sponsor certain foreign workers for permanent residency after demonstrating that qualified U.S. workers are not available for the positions.
Federal investigators determined that Instacart imposed additional application requirements on American job seekers for positions tied to the immigration sponsorship program. Those requirements differed from the company’s ordinary hiring procedures and, investigators said, prevented some applicants from receiving timely consideration.
Under the agreement, Instacart will establish a compensation fund of up to $4 million for affected job seekers and pay an additional $1 million in civil penalties to the federal government.
The company must also change its recruitment procedures, provide employee training, revise employment policies, and submit to federal compliance oversight.
Instacart disputes the allegations and maintains that its hiring practices complied with applicable laws and regulations. The agreement resolves the federal claims without establishing a criminal conviction.
Federal Investigation Identifies Hiring Barriers
The Justice Department’s Civil Rights Division and the EEOC investigated whether Instacart’s recruitment procedures violated federal protections against employment discrimination based on citizenship status and national origin.
Investigators focused on hiring activities associated with the PERM program.
According to the Justice Department, Instacart required applicants for certain PERM-related positions to submit their applications by mail.
However, applicants pursuing positions through the company’s ordinary recruitment process could submit applications electronically.
Federal officials concluded that the difference created unnecessary obstacles for American workers interested in immigration-sponsored positions.
The agencies also reported that the additional mailing requirement delayed consideration of many U.S. applicants.
The findings raised questions about whether the company’s recruitment procedures gave American workers a meaningful opportunity to compete for available positions before using those positions to support permanent residency applications for foreign employees.
The government’s investigation focused on the distinction between the two application processes.
Requiring physical applications can introduce additional time, expense, and uncertainty compared with electronic submissions. Applicants must prepare and mail their materials, and employers must receive, process, and evaluate those applications.
When one category of applicants encounters additional administrative requirements that others do not, federal authorities may examine whether those differences improperly restrict access to employment opportunities.
In this case, investigators concluded that the company’s PERM recruitment practices disadvantaged U.S. workers.
How the $5 Million Settlement Will Be Distributed
The settlement includes two major financial components.
Instacart must establish a compensation fund totaling up to $4 million for eligible individuals affected by the hiring practices.
The fund covers people who applied for qualifying positions and those discouraged or deterred from applying between December 2023 and February 2026.
Eligible individuals may receive back pay or compensatory damages, depending on the circumstances of their claims.
A claims administrator will oversee the compensation process, contact potentially affected individuals, and determine eligibility.
The $4 million fund does not mean every applicant will receive compensation or that the entire amount has already been distributed. Payments will depend on the claims process and eligibility determinations.
Separately, Instacart must pay $1 million in civil penalties to the United States.
Those penalties are distinct from compensation intended for affected job seekers.
The agreement therefore addresses both potential financial harm to applicants and the government’s enforcement of federal employment protections.
Instacart Required to Change Recruitment Practices
Beyond the financial settlement, Instacart must substantially change its hiring procedures.
The company must advertise PERM-related job openings on its public careers website and allow American workers to apply electronically.
Applicants must also be entered into the company’s central applicant-tracking system, helping ensure that candidates applying through PERM recruitment receive appropriate consideration.
These requirements are intended to eliminate the separate application procedures identified during the federal investigation.
Instacart must also revise its PERM recruitment policies to comply with federal anti-discrimination laws.
The settlement requires annual training for relevant personnel concerning citizenship status discrimination under the Immigration and Nationality Act and national origin discrimination under Title VII of the Civil Rights Act of 1964.
In addition, the company must appoint a monitor to oversee its PERM program and provide compliance reports.
According to the Justice Department’s settlement records, the training and monitoring requirements extend over three years.
The measures are designed to address the practices investigators identified while establishing procedures to prevent similar problems.
Understanding the PERM Immigration Program
The Permanent Labor Certification program plays an important role in the employment-based immigration system.
Administered through the U.S. Department of Labor, the program generally requires employers seeking to sponsor foreign workers for certain permanent employment opportunities to demonstrate that they have undertaken required recruitment efforts involving U.S. workers.
The process is intended to protect domestic employment opportunities while allowing businesses to pursue employment-based immigration sponsorship when applicable requirements are satisfied.
Employers must follow specific recruitment and documentation procedures.
Those procedures are intended to establish whether qualified, willing, able, and available U.S. workers exist for the positions being offered.
The program does not permit employers to bypass applicable anti-discrimination laws.
Businesses cannot lawfully manipulate recruitment procedures to discourage eligible U.S. applicants or create artificial barriers that improperly favor workers based on citizenship status or national origin.
The Justice Department has emphasized that employers participating in PERM recruitment must provide genuine opportunities for American workers to compete.
A company may sponsor foreign workers when legally permitted, but it must still comply with the recruitment and employment protections established under federal law.
The Instacart settlement illustrates how administrative hiring procedures, including application methods and candidate-tracking systems, can become central issues in federal discrimination investigations.
Federal Officials Emphasize Worker Protections
Assistant Attorney General Harmeet K. Dhillon, who leads the Justice Department’s Civil Rights Division, described the agreement as part of a continuing federal effort to protect U.S. workers from unlawful hiring discrimination.
Dhillon said the Instacart resolution represented the 15th settlement reached under her leadership through the department’s renewed worker-protection initiative.
The Justice Department maintains that employers cannot improperly favor workers holding temporary employment visas when recruiting for positions that must also be available to eligible U.S. applicants.
EEOC Chair Andrea Lucas similarly emphasized the agency’s responsibility to investigate employment practices that disadvantage American workers because of their national origin.
Federal officials said the Instacart agreement demonstrates their willingness to pursue coordinated enforcement when recruitment practices potentially violate more than one federal employment law.
The agencies’ involvement is significant because the investigation addressed two related but legally distinct forms of discrimination.
The Justice Department examined alleged citizenship status discrimination under the Immigration and Nationality Act.
The EEOC investigated alleged national origin discrimination under Title VII.
Although the laws protect different rights, both can apply to employment practices involving recruitment, applicant screening, and hiring decisions.
Instacart Denies Wrongdoing
Instacart maintains that its hiring practices complied with applicable federal laws.
In a statement reported by The Associated Press and Reuters, the company said it prioritizes hiring American workers and encourages qualified U.S. candidates to apply for available positions.
The company also emphasized its role as a U.S.-based grocery technology platform employing thousands of American workers.
Instacart said it agreed to resolve the matter so it could concentrate on serving customers, shoppers, retailers, and business partners.
The company’s response is an important distinction in evaluating the settlement.
Federal investigators reported evidence of discriminatory recruitment practices, and the agreement imposes financial and operational obligations on Instacart.
However, the settlement should not be characterized as a criminal conviction or as a court determination that the company committed every alleged violation.
The resolution concludes the federal investigation through an agreement requiring compensation, penalties, and compliance measures.
Part of a Broader Federal Enforcement Initiative
The Instacart agreement is part of the Justice Department’s Protecting U.S. Workers Initiative, an enforcement program focused on employment discrimination involving citizenship status.
The initiative was originally launched during President Donald Trump’s first administration and relaunched in 2025.
According to the Justice Department’s October 20 announcement, the program has secured more than $34 million in back pay for U.S. workers and more than $16 million in civil penalties since its original launch.
The department reported that the Instacart agreement was its 15th settlement under the initiative since its 2025 relaunch.
The EEOC is also pursuing enforcement activities through Project Firewall, which focuses in part on national origin discrimination against American workers.
Federal officials said the Instacart agreement was the EEOC’s fourth public settlement involving allegations of anti-American national origin discrimination since 2025.
At the time of the announcement, the EEOC also reported five pending federal lawsuits related to its enforcement efforts.
The government’s increased focus on employment-based immigration recruitment affects companies that sponsor foreign workers for permanent residency.
Businesses must ensure that their recruitment procedures comply not only with immigration requirements but also with federal civil rights protections.
Similar Cases Involving Major Technology Companies
The Instacart settlement follows earlier federal enforcement actions involving major technology employers.
In 2023, Apple agreed to a $25 million settlement with the Justice Department over allegations that its recruitment practices discriminated against U.S. workers in connection with the PERM program.
The Apple resolution addressed concerns that its recruitment procedures allegedly disadvantaged American applicants.
In 2021, Facebook, now part of Meta Platforms, agreed to a $14 million settlement to resolve federal allegations involving discriminatory recruitment practices associated with permanent labor certification.
These earlier agreements demonstrate that federal scrutiny of PERM recruitment predates the latest Instacart investigation.
The cases also illustrate how seemingly administrative hiring decisions can have substantial legal and financial consequences.
Federal regulators may examine where employers advertise positions, how applicants submit materials, whether applications are processed consistently, and whether recruitment procedures provide genuine employment opportunities.
For technology companies and other employers using employment-based immigration programs, the cases reinforce the importance of maintaining documented, legally compliant hiring systems.
What the Settlement Means for Employers
The Instacart agreement offers several practical lessons for businesses that sponsor immigration.
Employers should ensure that recruitment procedures do not impose unjustified barriers on eligible American workers.
Employers should review application methods, job advertisements, and candidate evaluation procedures for compliance with applicable federal requirements.
Companies using electronic application systems for ordinary recruitment should carefully evaluate whether separate procedures for immigration-related recruitment create unlawful disparities.
Human resources departments should also keep accurate records showing when they received applications, how they evaluated candidates, and why they made employment decisions.
These records can become important during federal investigations.
Employers should additionally review training programs to ensure recruiters and hiring managers understand citizenship status and national origin discrimination protections.
The settlement underscores that compliance involves more than satisfying immigration paperwork requirements.
Recruitment procedures must also comply with federal employment discrimination laws.
How Potentially Affected Workers Can Seek Compensation
Individuals who believe Instacart’s recruitment practices affected them between December 2023 and February 2026 may be eligible for compensation.
The settlement covers people who applied for qualifying PERM-related positions and those deterred from applying because of the challenged recruitment procedures.
The Justice Department and EEOC have encouraged potentially affected individuals to contact the agencies while they establish the claims administration process.
Individuals may email [email protected] to provide information about their circumstances.
The agencies have said they can share information received at that address with the claims administrator.
Eligibility and compensation amounts will be determined through the claims process.
Workers seeking general information about citizenship status discrimination can also contact the Justice Department’s Immigrant and Employee Rights Section.
The section operates a worker assistance hotline at 1-800-255-7688.
Employers seeking guidance may call 1-800-255-8155.
The hotlines operate Monday through Friday, from 9 a.m. to 5 p.m. Eastern time.
Additional information is available through the Justice Department’s civil rights resources.
Settlement Highlights Importance of Fair Hiring
The $5 million Instacart settlement illustrates the federal government’s continued scrutiny of recruitment practices tied to employment-based immigration programs.
Although the case focused on PERM recruitment application procedures, the broader issue is whether employers give legally protected workers fair opportunities to compete for available jobs.
For Instacart, the agreement creates financial obligations and requires changes to recruitment policies, employee training, and compliance monitoring.
For potentially affected workers, it establishes a process for eligible individuals to seek compensation.
For employers, the case highlights the need to ensure that hiring systems satisfy both immigration requirements and federal anti-discrimination laws.
The settlement also reflects coordinated enforcement by the Justice Department and EEOC, two federal agencies with overlapping interests in protecting employment opportunities.
Instacart continues to deny wrongdoing, but it has agreed to implement the settlement’s financial and operational requirements.
The case reinforces a central principle of federal employment law: Companies participating in lawful immigration sponsorship programs must still provide employment opportunities without unlawful discrimination.
Sources: U.S. Department of Justice, Office of Public Affairs, October 20, 2026, Press Release No. 26-1230; U.S. Equal Employment Opportunity Commission, October 20, 2026; Justice Department Civil Rights Division, Summary of Instacart Settlement Agreement and Settlements and Lawsuits records; The Associated Press and Reuters, October 20, 2026.
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