WASHINGTON, October 23, 2026 – Instacart has reached a $5 million federal settlement over allegations that its recruitment practices for employment-based green card sponsorship discriminated against U.S. workers. The Justice Department and Equal Employment Opportunity Commission announced the resolution October 20, following its finalization on October 19.
The case highlights a critical requirement for employers sponsoring foreign professionals: the permanent labor certification process, commonly called PERM, must provide qualified U.S. workers a genuine opportunity to apply.
What did federal investigators find?
According to the Justice Department, Maplebear Inc., which operates as Instacart, used different application procedures when recruiting for positions connected to permanent labor certification. For ordinary vacancies, the company generally permitted electronic applications.
But for positions advertised through PERM recruitment, it required U.S. applicants to submit applications through physical mail.
Federal investigators found that the additional requirement discouraged or disadvantaged applicants. In some cases, applications were not considered promptly because of the mailing process.
The agencies concluded that these practices discriminated against U.S. workers based on citizenship status and national origin under federal employment protections.
The settlement resolves the agencies allegations and findings; it should not be described as a criminal conviction.
How will the $5 million settlement work?
The agreement contains two principal financial components.
First, Instacart will establish a compensation fund of up to $4 million for people affected by the discriminatory recruitment practices between December 2023 and February 2026.
The fund may provide back pay and compensatory damages to eligible applicants, including people deterred from applying.
Second, Instacart will pay $1 million in civil penalties to the federal government.
A claims administrator will determine eligibility and coordinate compensation. The announcement does not establish that every affected person will receive the same payment.
Who may be eligible for compensation?
The potential claimant group includes people who applied for affected Instacart PERM positions and those discouraged from applying because of the company’s recruitment practices.
The Justice Department and EEOC have asked people who believe they were affected to contact Instacart@eeoc.govwhile the formal claims-administration process is being established. Contacting the agencies does not guarantee eligibility or compensation.
Applicants should retain job advertisements, application records, correspondence and other evidence that could help establish how the recruitment process affected them.
What is the PERM process?
PERM is a Department of Labor process used by many employers seeking to sponsor foreign workers for employment-based permanent residence.
Before obtaining labor certification, an employer generally must conduct required recruitment and demonstrate that the applicable labor-market requirements have been satisfied.
The process protects U.S. workers while allowing employers to pursue lawful sponsorship of eligible foreign professionals. Employers cannot create a separate recruitment system designed to make it harder for U.S. workers to compete for positions associated with PERM applications.
That remains true even when the employer already has a foreign national employee it hopes to sponsor.
What must Instacart change?
Under the settlement, Instacart must advertise PERM positions on its public careers website and accept electronic applications.
The company must also enter applicants into its central tracking system, revise relevant employment policies and provide personnel training. Federal monitoring and reporting requirements will apply to its recruitment practices.
These measures are intended to make PERM hiring procedures more consistent with ordinary recruitment and prevent future discrimination.
Official source: https://www.justice.gov/opa/pr/civil-rights-division-and-equal-employment-opportunity-commission-secure-5000000-joint
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