Instacart has agreed to pay a $5 million penalty to the Department of Justice and the U.S. Equal Employment Opportunity Commission after an investigation found the company favored foreign workers holding temporary visas over U.S. citizens in its hiring and recruitment practices. The DOJ’s Civil Rights Division cited that Instacart required U.S. applicants to mail paper applications—a process that disadvantaged them—while accepting electronic submissions for foreign candidates, creating an uneven playing field.
Under the settlement terms, Instacart will set aside a $4 million fund to compensate affected U.S. applicants and to deter future violations between December 2023 and February 2026. A claims administrator will contact potential victims and determine eligibility for back pay and damages, while the company is also required to post all U.S. openings on its public career site and accept electronic applications.
The settlement includes a $1 million civil penalty and mandates that Instacart train personnel on anti‑discrimination obligations, revise its employment policies, and submit to ongoing monitoring and reporting to ensure compliance with the PERM recruitment rules. The company’s spokesperson told Fox News Digital that it remains committed to hiring U.S. workers and that the settlement will allow it to focus on its mission of delivering groceries and services nationwide.
Assistant Attorney General Harmeet K. Dhillon highlighted the case as the fifteenth settlement under his leadership, emphasizing that the DOJ will continue to hold companies accountable for discriminatory hiring. Chair Andrea Lucas of the EEOC added that the agency will keep pursuing companies that deny equal opportunities to U.S. workers.
The settlement’s final step will be the appointment of a claims administrator, who will reach out to eligible applicants via an email address set up by the DOJ and EEOC, ensuring that those who suffered discrimination receive timely compensation and that future hiring practices at Instacart align with federal anti‑discrimination laws.