Popular Food Delivery App Will Pay Millions After DOJ Says American Gig Workers Were Discriminated Against
The Justice Department’s Civil Rights Division said on Tuesday that the company operating Instacart will pay $5 million as part of a settlement for discriminating against American workers.
Maplebear Inc., an online delivery service based in San Francisco, California, violated the Immigration and Nationality Act and the Civil Rights Act of 1964, according to a Justice Department news release.
The federal government “uncovered evidence that Instacart’s hiring and recruitment practices undertaken as part of the Permanent Labor Certification (PERM) process intentionally discriminated against U.S. and American workers by preferring workers with temporary employment visas,” the release said.
Assistant Attorney General Harmeet Dhillon commented on the case, saying, “This significant resolution marks the fifteenth settlement agreement the Civil Rights Division has reached under my leadership to protect U.S. workers.”
“Our record demonstrates that the Justice Department is holding companies who prefer workers with temporary employment visas accountable,” she declared. “We will not stop fighting for U.S. workers until there is a fair playing field.”
Dhillon posted about the settlement on X as well, writing, “Major win for protecting U.S. workers! Instacart has agreed to a $5 million settlement for discrimination during PERM recruitment.”
Major win for protecting U.S. workers! Instacart has agreed to a $5 million settlement for discrimination during PERM recruitment. Thank you @andrealucasEEOC for your partnership in getting a great result and sending a message that this administration holds companies accountable.
https://t.co/PCTPAdR2Up— AAGHarmeetDhillon (@AAGDhillon) October 20, 2026
U.S. Equal Employment Opportunity Commission Chair Andrea Lucas added in the release, “Today’s settlement makes clear that when employers erect unlawful barriers that harm American workers, the EEOC will act decisively.”
“The EEOC is committed to holding companies accountable when they deny equal work opportunities to U.S. workers by preferring temporary visa holders for jobs. Discrimination against workers based on their American national origin has no place in our economy.”
The probe revealed that Instacart made it more difficult for American workers to apply for jobs at the company by forcing them to mail in applications, rather than allowing them to apply online, which is standard practice.
Due to this delay, the Justice Department said certain applicants were not considered in a timely manner.
As part of the settlement agreement, Instacart must set up a fund of “up to $4,000,000 to compensate Instacart applicants as well as deterred applicants affected by the discriminatory practices from December 2023 to February 2026.”
Federal administrators will now work to determine who was affected so that these individuals can be informed of their right to potential monetary damages.
Moreover, Instacart will pay $1 million in civil penalties to the United States, be required to give U.S. workers the chance to apply electronically, and institute a training program regarding its anti-discrimination obligations.
The company could also face federal monitoring and possible reporting requirements to deter similar behavior going forward.
The Justice Department said this was the 15th time it has reached a settlement of this kind since relaunching its Protecting U.S. Workers Initiative back in 2025, and that it has secured more than $34 million in back pay and $16 million in civil penalties dating back to President Donald Trump’s first term.
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