Instacart has agreed to a $5 million federal settlement after investigators found that the grocery delivery company used hiring practices that disadvantaged American job applicants while favoring workers holding temporary employment visas. The agreement, announced Tuesday by the Justice Department and Equal Employment Opportunity Commission, resolves allegations of discrimination based on citizenship status and national origin.
Federal investigators found that Instacart required U.S. applicants to physically mail applications for certain positions connected to its permanent labor certification program, even though the company ordinarily accepted electronic job applications. The agencies said this additional requirement prevented some American applicants from receiving timely consideration for available positions.
Under the settlement, Instacart will establish a fund of up to $4 million for applicants and people discouraged from applying between December 2023 and February 2026. Another $1 million will go to the federal government in civil penalties. A claims administrator will determine who qualifies for compensation, which may include back pay and damages.
The positions were advertised through a federal program that allows employers to sponsor foreign workers for permanent residency after making a good-faith effort to recruit qualified U.S. workers. Instacart must now advertise these positions on its public careers website, accept electronic applications, revise its hiring policies, and provide employee training. The company will also face federal monitoring and reporting requirements.
Instacart maintains that its hiring practices complied with applicable laws and regulations but said it agreed to resolve the matter to focus on its business. The settlement follows similar federal actions involving technology companies accused of placing additional barriers in front of American job seekers. Applicants who believe they were affected can contact the Equal Employment Opportunity Commission while the compensation process is being established.
