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- calendar_today October 22, 2026
Instacart Agrees to $5 Million Settlement Following DOJ Allegations
Grocery delivery company Instacart has agreed to pay $5 million to settle allegations from the U.S. Department of Justice (DOJ) that it discriminated against American job applicants in favor of foreign workers. The agreement, announced on October 22, 2026, marks a significant enforcement action under President Donald Trump’s administration and highlights the ongoing scrutiny of major employers’ hiring practices.
Details of the DOJ Allegations
The DOJ’s investigation found that Instacart, operating through its parent company Maplebear Inc., violated federal employment discrimination laws. According to federal officials, from December 2023 to February 2026, Instacart manipulated the Permanent Labor Certification (PERM) process by requiring American applicants to submit their job applications via traditional mail, while the electronic application system was otherwise standard for the company. The DOJ argued that this requirement placed unnecessary obstacles in front of U.S. applicants, disadvantaging them in favor of foreign workers seeking permanent residency.
Breakdown of the Settlement Terms
Under the terms of the agreement, Instacart will establish a $4 million compensation fund for potentially affected American job applicants who may have been excluded from opportunities due to the company’s practices. In addition, Instacart will pay a $1 million civil penalty to resolve the allegations brought by the DOJ. The settlement was reached in cooperation with the Equal Employment Opportunity Commission (EEOC), which has undertaken an enforcement initiative, “Project Firewall,” aimed at combating employment discrimination against American workers.
Statements from Federal Officials
Harmeet Dhillon, Assistant Attorney General for the Civil Rights Division, highlighted that this resolution is the fifteenth such agreement aimed at protecting American workers since President Trump’s return to the White House. "Our record demonstrates that the Justice Department is holding companies who prefer workers with temporary employment visas accountable," Dhillon stated, emphasizing the administration’s commitment to ensuring fair hiring practices for U.S. workers.
EEOC Chair Andrea Lucas also addressed the settlement, stressing that employers "cannot unlawfully favor temporary visa holders over qualified U.S. applicants." Lucas reiterated that "discrimination against workers based on their American national origin has no place in our economy." The EEOC’s collaboration in the case underscores the agency’s focus on enforcing equal opportunity laws in the hiring process.
Instacart’s Response
Instacart has denied violating federal law and maintains that it has always prioritized hiring American workers. In a statement, a company spokesperson said, "While we maintain that our practices complied with all applicable laws and regulations, we’re pleased to have resolved this matter." The settlement does not include an admission of wrongdoing by Instacart.
Background on the PERM Program
The PERM program is a federal process that allows employers to sponsor foreign workers for permanent residency, but it requires companies to make good-faith efforts to first recruit and hire qualified American workers. Federal authorities alleged that Instacart failed to meet this requirement through the practices outlined in the DOJ’s complaint.
Source: tennesseestar.com.
