Maplebear Inc., which operates the grocery delivery service Instacart, has reached a $5 million settlement with the U.S. Department of Justice's Civil Rights Division over allegations of discrimination against American workers [1]. The DOJ accused the company of violating the Immigration and Nationality Act (INA) and Title VII of the Civil Rights Act of 1964 by discriminating against U.S. workers based on country of origin [1]. The discriminatory scheme allegedly occurred from December 2023 through February 2026 [1].
According to the settlement terms, Instacart abused the Permanent Labor Certification (PERM) process by imposing undue burdens on American applicants, requiring them to physically mail applications to the company rather than using Instacart's standard electronic application process [1]. This deviation from normal procedures effectively discouraged American workers from applying while the company pursued temporary visa workers through the PERM program [1]. The settlement requires Instacart to establish a $4 million compensation fund for wronged applicants and pay $1 million in civil penalties [1].
Assistant Attorney General Harmeet K. Dhillon characterized the resolution as significant, stating it marks "the 15th settlement agreement the Civil Rights Division has reached under my leadership to protect U.S. workers" [1]. Dhillon emphasized that "the Justice Department is holding companies who prefer workers with temporary employment visas accountable" and pledged continued enforcement efforts [1]. The settlement was secured in conjunction with the U.S. Equal Employment Opportunity Commission (EEOC) as part of a broader initiative called "Project Firewall" [1]. This enforcement action reflects the Trump administration's broader effort to ensure American workers are not illegally discriminated against in hiring practices [1].
CONCLUSION
Instacart's $5 million settlement represents a significant enforcement action against alleged worker discrimination and signals heightened regulatory scrutiny of companies using visa sponsorship programs. The case underscores the DOJ's commitment to protecting American workers from hiring discrimination, with this being the 15th such settlement under current leadership. While the financial impact to Instacart is material, the broader implications suggest increased compliance costs for companies utilizing the PERM visa sponsorship process.