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Instacart Settles Federal Claims of Discrimination Against US-Born Job Seekers

The agreement creates a $4 million claims fund and adds $1 million in penalties after federal agencies said Instacart favored visa holders.

  • On Tuesday, San Francisco-based Instacart reached a $5 million settlement with the federal government to resolve allegations of discriminating against American workers in its Permanent Labor Certification recruitment program.
  • The Justice Department and Equal Employment Opportunity Commission alleged the company created barriers for American workers by requiring physical mail applications for PERM-linked roles, unlike its standard electronic process.
  • Under the agreement, Instacart must establish a fund of up to $4 million to compensate affected applicants, pay $1 million in civil penalties, and post PERM jobs on its public career website with electronic applications accepted.
  • San Francisco-based Instacart stated on Tuesday that its hiring practices complied with applicable laws, though the company agreed to the settlement to remain focused on serving customers, retailers, and brands.
  • The settlement positions Instacart alongside Facebook and Apple, which agreed to $14 million and $25 million settlements respectively over similar allegations of favoring foreign workers in hiring practices.
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Courthouse News Service broke the news in Pasadena, United States on Tuesday, October 20, 2026.
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