The Justice Department says Instacart’s parent company discriminated against American workers by favoring temporary visa holders during its hiring process, requiring the company to pay $5 million and change its recruitment practices.

Maplebear Inc., the San Francisco-based company that operates Instacart, reached a settlement with the Justice Department’s Civil Rights Division and the Equal Employment Opportunity Commission over alleged violations of the Immigration and Nationality Act and the Civil Rights Act of 1964.

According to the Justice Department, investigators uncovered evidence that Instacart intentionally favored workers holding temporary employment visas during recruitment conducted through the Permanent Labor Certification (PERM) process. The process is used by employers seeking to hire foreign workers for certain permanent positions in the United States.

Federal investigators found that Instacart made it more difficult for American workers to apply for jobs by requiring them to submit applications through the mail rather than allowing them to apply electronically, as is standard practice. The department said the resulting delays meant some applicants were not considered in a timely manner.

Assistant Attorney General Harmeet Dhillon said the settlement marks the 15th agreement reached by the Civil Rights Division under her leadership to protect American workers from discriminatory hiring practices.

“This significant resolution marks the fifteenth settlement agreement the Civil Rights Division has reached under my leadership to protect U.S. workers,” Dhillon said.

She added that the department would continue holding companies accountable when they favor temporary visa holders over American workers.

“We will not stop fighting for U.S. workers until there is a fair playing field,” Dhillon declared.

Dhillon also announced the settlement on X, describing it as a major victory for American workers and confirming that Instacart had agreed to pay $5 million over its recruitment practices.

Equal Employment Opportunity Commission Chair Andrea Lucas said the agreement reinforces the federal government's commitment to enforcing laws that protect American workers from discrimination.

“Today’s settlement makes clear that when employers erect unlawful barriers that harm American workers, the EEOC will act decisively,” Lucas said.

She added that employers cannot deny Americans equal employment opportunities by favoring temporary visa holders, emphasizing that discrimination based on American national origin has no place in the U.S. economy.

Under the settlement, Instacart must establish a fund of up to $4 million to compensate applicants who were affected by the alleged discriminatory practices between December 2023 and February 2026. The fund will also cover applicants who were deterred from applying because of the company's recruitment procedures.

Federal officials will work to identify eligible individuals and notify them of their potential right to receive compensation.

The company will pay an additional $1 million in civil penalties to the federal government. Instacart must also allow American workers to submit job applications electronically and implement a training program addressing its anti-discrimination obligations.

The settlement further allows for federal monitoring and potential reporting requirements intended to prevent similar practices in the future.

The Justice Department said the agreement is part of its Protecting U.S. Workers Initiative, which was relaunched in 2025. According to the department, enforcement efforts dating back to President Donald Trump’s first administration have secured more than $34 million in back pay and $16 million in civil penalties.

The settlement places Instacart among the companies that have reached agreements with federal authorities over hiring practices affecting American workers. The agreement requires the company to compensate potentially affected applicants, pay a civil penalty, and revise its recruitment procedures to provide Americans with more direct access to job opportunities.