The Justice Department and Equal Employment Opportunity Commission announced on October 20, 2026, that Maplebear Inc., which does business as Instacart, will pay a $5,000,000 settlement over allegations its hiring practices disadvantaged U.S. workers during permanent-residency recruitment. The $5 Million settlement addresses alleged bias involving temporary visa holders.
The agencies said the company favored workers with temporary employment visas in recruitment for jobs tied to the Permanent Labor Certification process, known as PERM. The allegations involve citizenship status under the Immigration and Nationality Act and national origin under Title VII of the Civil Rights Act of 1964.
The Justice Department said the company required U.S. applicants for some PERM positions to mail applications, despite allowing electronic applications through its standard recruiting process. Investigators said many U.S. applicants were not considered in time. The EEOC found similar evidence.
Applicants deterred by the recruitment process may qualify for compensation
The settlement creates a fund for people who applied for covered positions and people deterred from applying by the alleged practices. It covers the period from December 2023 to February 2026.
| Potential claimant | What the agreement provides |
|---|---|
| Applicants to PERM positions | An opportunity to seek compensation from a $4,000,000 fund |
| Applicants deterred by the alleged practices | Eligibility to seek compensation from the same fund |
The company must obtain a claims administrator to contact eligible claimants and give them an opportunity to receive compensation. The settlement summary does not provide a claims-filing deadline.
The agreement replaces mailed applications with online access and oversight
The Justice Department’s settlement summary says the company must post PERM jobs on its public website and accept electronic applications from U.S. workers. It must also post PERM openings on its public careers website.
The agreement requires the company to pay $1,000,000 in civil penalties to the United States. It also requires revised PERM policies to comply with protections against discrimination based on citizenship status and national origin.
Personnel must receive annual training on the relevant provisions of the INA and Title VII. The company must appoint a monitor to oversee its PERM program and submit reports on compliance with the agreement.
PERM recruitment is part of the process employers use when seeking permanent-residency sponsorship for a foreign national. Employers must verify that no qualified American workers are available before sponsoring a foreign national for permanent residency. The agencies allege the company departed from its ordinary electronic application process for PERM recruitment.
Federal officials defend the settlement while the company disputes the allegations
Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division called the agreement the division’s fifteenth settlement under her leadership to protect U.S. workers. She said the department would continue pursuing companies accused of favoring workers with temporary employment visas.
“Our record demonstrates that the Justice Department is holding companies who prefer workers with temporary employment visas accountable. We will not stop fighting for U.S. workers until there is a fair playing field.”
EEOC Chair Andrea Lucas said the agency would act against employers that create barriers to jobs. She said the EEOC was committed to holding companies accountable when U.S. workers lose equal opportunities because employers prefer temporary visa holders. Lucas added that discrimination based on American national origin has no place in the economy.
Company spokesperson Michael Campbell said the company maintained that its practices complied with applicable laws and regulations, and welcomed resolving the matter. He also said it does not target or prefer foreign nationals and hires candidates based on skills, need and experience.
“While we maintain that our practices complied with all applicable laws and regulations, we're pleased to have resolved this matter.”
Campbell said the resolution would let the company focus on its mission serving customers, shoppers, retailers and brands. The company said it promotes roles through many channels to put qualified U.S. candidates first.
The case joins federal scrutiny of recruitment tied to immigration sponsorship
The matter falls under the Protecting U.S. Workers Initiative, relaunched in 2025 to scrutinize recruitment practices within employment-based immigration sponsorship. The Justice Department has compiled more than a dozen settlements since last year with companies accused of discriminating against Americans.
That enforcement record includes a $3.2 million agreement with OpenAI announced in August. OpenAI denied discouraging Americans from applying for jobs. Apple agreed to a $25 million settlement in 2023 after federal regulators said its hiring practices discriminated against U.S. candidates for jobs that went to immigrant workers seeking permanent-resident status.
Facebook agreed to pay $14 million in 2021 to settle claims about its hiring practices. Those cases involved allegations against the companies.
The company described itself as a U.S.-based grocery technology platform employing thousands of American workers and serving millions of customers, retailers, shoppers and brands. It said hiring and investing in U.S. workers remained a priority.
“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. 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.”
