The federal government has reached a $5 million settlement with San Francisco-based Instacart over allegations that the company discriminated against U.S.-born job seekers in its hiring process. The settlement resolves claims brought by the U.S. Department of Justice’s Civil Rights Division and the Equal Employment Opportunity Commission relating to Instacart’s use of the Permanent Labor Certification (PERM) program, which enables employers to hire temporary visa holders and sponsor them for permanent residency after demonstrating efforts to recruit U.S. workers.

According to the federal agencies, Instacart imposed an undue burden on U.S. applicants by requiring job applications for positions under the PERM recruitment program to be submitted via physical mail, despite allowing electronic applications for other roles. This requirement allegedly discouraged some American workers from applying between December 2023 and February 2026.

Under the terms of the settlement, Instacart has agreed to create a $4 million fund to compensate applicants who were allegedly affected or deterred by these recruitment practices. The company will also pay $1 million in civil penalties to the government. Additionally, Instacart must post all jobs related to the PERM program on its publicly accessible career website and accept electronic applications to ensure equal access moving forward.

Instacart stated it believes its hiring practices have complied with relevant laws and regulations but agreed to the settlement to focus on its business operations. “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,” the company said.

This settlement underscores growing federal scrutiny of corporate compliance with labor certification requirements designed to protect domestic job seekers while addressing workforce needs through temporary visa programs.