Instacart fined $5M for discriminating against U.S. workers in hiring

According to the DOJ, Instacart's hiring practices discriminated on the basis of citizenship status and national origin, particularly during the labor market test required for the PERM (Program Electronic Review Management) recruitment process. PERM is a mandatory step for US employers wishing to sponsor foreign nationals for employment-based green cards, requiring companies to demonstrate they have undertaken good-faith efforts to hire US workers before offering positions to foreign workers.

The investigation found that Instacart created additional hurdles for US applicants by requiring them to submit physical, mailed applications for positions advertised as part of PERM recruitment, while foreign applicants were allowed to submit electronic applications. As a result, many US workers’ applications were not considered in a timely manner, giving preference to temporary visa holders.

“This significant resolution marks the fifteenth settlement agreement the Civil Rights Division has reached under my leadership to protect US workers,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “Our record demonstrates that the Justice Department is holding companies who prefer workers with temporary employment visas accountable. We will not stop fighting for US workers until there is a fair playing field.” Andrea Lucas, Chair of the EEOC, added, “The EEOC is committed to holding companies accountable when they deny equal work opportunities to US workers by preferring temporary visa holders for jobs. Discrimination against workers based on their American national origin has no place in our economy.”

As part of the agreement, Instacart will set up a $4 million settlement fund to compensate applicants and others deterred from applying due to the discriminatory practices between December 2023 and February 2026. A claims administrator will contact individuals potentially impacted to determine eligibility for back pay and compensatory damages. Until then, the DOJ and EEOC are encouraging individuals who believe they may have been affected to contact Instacart@eeoc.gov.

Additionally, Instacart will pay $1 million in civil penalties to the United States and has committed to revising its recruitment process. The company is now required to post PERM-related job openings on its public website and accept electronic applications from all candidates. Furthermore, Instacart will provide anti-discrimination training to personnel, revise employment policies, and remain subject to ongoing monitoring to prevent future violations.

In a statement to Fox News Digital, an Instacart spokesperson said, “Hiring and investing in American workers across our US business is our priority, and we actively promote every role across many channels to ensure qualified US candidates are always first in line for opportunities. While we maintain that our practices complied with all applicable laws and regulations, we’re pleased to have resolved this matter so we can keep our full focus on delivering on our mission for customers, shoppers, retailers, and brands.”