Instacart Reaches $5 Million Settlement with DOJ and EEOC Over Alleged Hiring Discrimination

The U.S. Department of Justice’s Civil Rights Division and the Equal Employment Opportunity Commission (EEOC) announced a joint $5 million settlement with Maplebear Inc., doing business as Instacart, to resolve allegations of discrimination against U.S. workers based on citizenship status and national origin.

According to federal authorities, the San Francisco-based delivery company engaged in discriminatory recruitment practices during the Permanent Labor Certification (PERM) process by favoring temporary employment visa holders over U.S. workers. The agencies stated that these actions violated both the Immigration and Nationality Act and Title VII of the Civil Rights Act of 1964.

Investigations by both the DOJ and EEOC found that Instacart imposed burdensome requirements on U.S. applicants. Specifically, the company required applications for PERM-related job postings to be physically mailed, departing from its standard electronic application process. Federal officials reported that this practice resulted in many U.S. applicants not receiving timely consideration.

Under the settlement terms, Instacart will pay $1 million in civil penalties to the United States and establish a fund of up to $4 million to compensate applicants and deterred applicants affected by the practices from December 2023 to February 2026. Eligibility for back pay and compensatory damages will be determined by an independent claims administrator.

The agreement also requires Instacart to implement institutional changes. The company must allow electronic applications and publicly post PERM-related positions on its career website, train relevant personnel on anti-discrimination laws, update employment policies, and submit to monitoring and reporting requirements.

The resolution represents the 15th settlement under the Justice Department's Protecting U.S. Workers Initiative since its relaunch in 2025, as well as the fourth public settlement involving national origin discrimination claims against American workers under the EEOC's Project Firewall.

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