Instacart has agreed to pay $5 million to settle allegations that it discriminated against American workers by favoring temporary visa holders during recruitment for jobs linked to green-card sponsorship, the US Department of Justice (DOJ) and the Equal Employment Opportunity Commission (EEOC) announced on October 20, 2026.

The settlement with Maplebear Inc., which operates the online grocery delivery platform Instacart, follows investigations into its recruitment practices under the US Permanent Labor Certification (PERM) program. Federal agencies alleged that the company created additional barriers for American workers applying for positions advertised as part of the green-card sponsorship process.

The agreement includes up to $4 million to compensate affected applicants and people who were deterred from applying because of the alleged practices. Instacart will also pay $1 million in civil penalties to the US government.US launches nationwide operation targeting undocumented immigrants accused of SNAP fraudWhat US investigators found in Instacart's hiring processAccording to the DOJ, Instacart required applicants for certain positions advertised under PERM recruitment to submit applications by physical mail. This differed from the company's standard recruitment process, which allowed candidates to apply electronically.

The department said the additional requirement created obstacles for US workers and meant many applicants were not considered in a timely manner. The EEOC's investigation uncovered similar evidence. Assistant Attorney General Harmeet K. Dhillon said the settlement marked the 15th agreement reached by the Civil Rights Division under her leadership to protect American workers.EEOC Chair Andrea Lucas said the agency would act against employers that unlawfully restrict employment opportunities for US workers by preferring temporary visa holders.

The agencies alleged that the recruitment practices violated the Immigration and Nationality Act and Title VII of the Civil Rights Act of 1964, which prohibit certain forms of discrimination based on citizenship status and national origin, respectively. How the $5 million settlement will workUnder the agreement, a claims administrator will contact potentially affected applicants and determine eligibility for back pay and compensatory damages. The compensation fund can total up to $4 million.

Infosys, Cognizant and TCS H-1B visa registrations plunge amid Trump’s US immigration crackdownApplicants who believe they were affected can email Instacart@eeoc.gov so the agencies can share their information with the claims administrator. Instacart must also advertise relevant positions on its public careers website and accept electronic applications during PERM recruitment. The company is required to revise its employment policies, train personnel on anti-discrimination obligations and comply with monitoring and reporting requirements. What the case means for the green-card processThe PERM program allows employers to sponsor eligible foreign workers for employment-based permanent residency after conducting recruitment to determine whether qualified US workers are available for the position.

Employers cannot unlawfully disadvantage American workers based on citizenship status or national origin during this process. PERM is an important step for many employment-based green-card applications, including those in the EB-2 and EB-3 categories. The DOJ said the settlement forms part of its Protecting U.S. Workers Initiative, relaunched in 2025 to investigate employers accused of illegally favoring temporary visa holders.

The case highlights the scrutiny employers face over recruitment practices used in employment-based immigration sponsorship and the requirement to provide US workers with fair opportunities to apply.