The federal government has reached a $5 million settlement with for allegedly discriminating against U.S.-born workers in its hiring practices.
According to the U.S. Department of Justice Civil Rights Division and the Equal Employment Opportunity Commission, Instacart was advertising jobs through the Permanent Labor Certification, or PERM, program. The program lets employers hire temporary visa holders and sponsor them for permanent resident status as long as they have also made a good-faith effort to hire U.S. workers.
The agencies said Instacart created a burden for U.S. workers by requiring that applications be physically mailed to the company for jobs that were listed as part of its PERM recruitment program. Instacart allows electronic applications for its standard job recruitment process.
San Francisco-based said Tuesday that its hiring practices complied with U.S. laws and regulations, but it agreed to the settlement in order to remain focused on its business.
“We’re proud to be a U.S.-based grocery technology platform, employing thousands of American workers and serving millions of customers, retailers, shoppers and brands,” the company said. “Hiring and investing in American workers across our U.S. business is our priority, and we actively promote every role across many channels to ensure qualified U.S. candidates are always first in line for opportunities.”
Instacart is the latest tech company to reach a settlement with the government over allegations that it favors foreign workers for certain jobs.
In 2023, agreed to a $25 million settlement after federal regulators said its hiring practices discriminated against U.S. candidates for jobs that went to immigrant workers seeking permanent resident status in the country. Facebook agreed to pay $14 million in 2021 to settle claims about its hiring practices.
“Our record demonstrates that the Justice Department is holding companies who prefer workers with temporary employment visas accountable,” Assistant Attorney General Harmeet K. Dhillon said in a statement. “We will not stop fighting for U.S. workers until there is a fair playing field.”
The settlement requires Instacart to establish a fund of up to $4 million to compensate job applicants and people who were allegedly deterred from applying to Instacart between December 2023 and February 2026.
Instacart will pay $1 million in civil penalties to the federal government. The company is also required to post jobs that are part of its PERM recruitment program on its public career website and accept electronic applications.