SAN FRANCISCO, CALIFORNIA — The U.S. Department of Justice’s Civil Rights Division and the U.S. Equal Employment Opportunity Commission secured a $5,000,000 settlement with Maplebear Inc., doing business as Instacart, on Tuesday. The San Francisco-based online delivery service will pay the sum to resolve allegations that it 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. Primary source: justice.gov

The agencies found that Instacart intentionally discriminated against U.S. workers by preferring workers with temporary employment visas during the Permanent Labor Certification (PERM) recruitment process. The PERM program allows employers to sponsor temporary visa holders for permanent residency after complying with U.S. worker recruitment requirements. Investigators determined that Instacart required U.S. workers to physically mail applications for PERM positions, while its standard recruitment process allowed electronic applications. Primary source: justice.gov

Under the agreement, Instacart will pay $1,000,000 in civil penalties to the United States. The company will also establish a settlement fund of up to $4,000,000 to compensate applicants affected by discriminatory practices from December 2023 to February 2026. A claims administrator will contact potential aggrieved individuals and determine eligibility for back pay and compensatory damages.

Instacart is required to post PERM positions on its public career website and accept electronic applications to ensure fair opportunities for U.S. workers. The agreement further requires the company to train personnel on anti-discrimination obligations, revise employment policies, and submit to monitoring and reporting requirements.

"Today’s settlement makes clear that when employers erect unlawful barriers that harm American workers, the EEOC will act decisively," said Andrea Lucas, Chair of the EEOC. "The EEOC is committed to holding companies accountable when they deny equal work opportunities to U.S. workers by preferring temporary visa holders for jobs." Lucas added that discrimination against workers based on their American national origin has no place in the economy.

"This significant resolution marks the fifteenth settlement agreement the Civil Rights Division has reached under my leadership to protect U.S. workers," Dhillon said. She stated that the record demonstrates the Justice Department is holding companies who prefer workers with temporary employment visas accountable. "We will not stop fighting for U.S. workers until there is a fair playing field," Dhillon said.

Why It Matters

It contributes to more than $34 million in back pay and $16 million in civil penalties secured since the Protecting U.S. Workers Initiative began. The case also represents the fourth public settlement under the EEOC's Project Firewall initiative targeting anti-American national origin discrimination since 2025. Primary source: justice.gov