Grocery delivery giant Instacart has agreed to pay $5 million to settle allegations that it discriminated against American job applicants in favor of foreign workers, marking another enforcement action under President Donald Trump’s administration.
The Department of Justice announced the settlement with Maplebear Inc., Instacart’s parent company, following allegations that the company violated federal employment discrimination laws by placing unnecessary obstacles in the path of American applicants.
According to the DOJ, Instacart manipulated the Permanent Labor Certification (PERM) process between December 2023 and February 2026 by requiring U.S. applicants to submit job applications through traditional mail rather than the electronic system ordinarily used by the company.
Federal officials alleged the practice disadvantaged American workers while allowing the company to pursue foreign workers seeking permanent residency.
Under the agreement, Instacart will establish a $4 million compensation fund for potentially affected applicants and pay an additional $1 million in civil penalties.
Assistant Attorney General Harmeet Dhillon said the settlement represents the Civil Rights Division’s 15th agreement aimed at protecting American workers since Trump returned to the White House.
“Our record demonstrates that the Justice Department is holding companies who prefer workers with temporary employment visas accountable,” Dhillon said. “We will not stop fighting for U.S. workers until there is a fair playing field.”
The PERM program allows employers to sponsor foreign workers for permanent residency, but federal law requires companies to make good-faith efforts to recruit qualified American workers before seeking foreign labor.
The settlement was reached in cooperation with the Equal Employment Opportunity Commission, which has launched an enforcement initiative called “Project Firewall” targeting employment discrimination against American workers.
EEOC Chair Andrea Lucas emphasized that employers cannot unlawfully favor temporary visa holders over qualified U.S. applicants.
“Discrimination against workers based on their American national origin has no place in our economy,” Lucas said.
Instacart denied violating federal law, maintaining that hiring American workers remains a priority.
“While we maintain that our practices complied with all applicable laws and regulations, we’re pleased to have resolved this matter,” a company spokesperson said.
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Written by staff reporters at American Greatness.
