Instacart has agreed to pay up to $5 million to settle allegations that it disadvantaged American workers during recruitment for positions linked to employment-based green-card sponsorship, according to the US Department of Justice (DOJ) and the Equal Employment Opportunity Commission (EEOC).
The settlement with Maplebear Inc., the company operating the online grocery delivery platform Instacart, was announced on October 20, 2026, following investigations into its recruitment practices under the US Permanent Labor Certification (PERM) programme.
Under the agreement, up to $4 million will be set aside to compensate applicants who were allegedly affected by the hiring practices, including people who may have been discouraged from applying. The company will also pay $1 million in civil penalties to the US government.
What investigators found
According to the DOJ, Instacart allegedly required applicants for certain positions advertised under the PERM recruitment process to submit their applications by physical mail. This differed from its standard hiring procedure, which allowed candidates to apply electronically.
Federal investigators alleged that the additional requirement created unnecessary barriers for American workers and prevented some applications from being considered promptly.
Assistant Attorney General Harmeet K. Dhillon said the settlement was part of efforts to protect American workers from unlawful employment discrimination. EEOC Chair Andrea Lucas also emphasised that employers must not restrict job opportunities by unlawfully favouring temporary visa holders.
The agencies alleged that the practices violated provisions of the Immigration and Nationality Act and Title VII of the Civil Rights Act of 1964.
How affected applicants can seek compensation
Under the settlement, a claims administrator will contact potentially eligible applicants and determine whether they qualify for back pay and compensatory damages from the fund of up to $4 million.
Individuals who believe they were affected can email Instacart@eeoc.gov to request that their information be shared with the claims administrator.
The agreement also requires Instacart to advertise relevant positions on its public careers website, accept electronic applications during PERM recruitment, revise employment policies and train relevant personnel on anti-discrimination requirements. The company will also face monitoring and reporting obligations.
What it means for green-card applicants
The PERM programme is an important step in many employment-based green-card applications. It requires employers to conduct recruitment to determine whether qualified American workers are available for a particular position before sponsoring an eligible foreign worker for permanent residency.
The process is particularly relevant to applicants in employment-based immigration categories such as EB-2 and EB-3.
The DOJ said the settlement forms part of its Protecting U.S. Workers Initiative, which was relaunched in 2025 to investigate employers suspected of unlawfully favouring temporary visa holders.
The case highlights the importance of fair recruitment practices in the US employment-based immigration system and reinforces employers’ obligations to provide American workers with a fair opportunity to compete for available positions.
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