Instacart has agreed to pay $5 million to resolve U.S. government allegations that its recruitment for permanent labor certification (PERM) positions favored temporary-visa holders and disadvantaged U.S. workers, the Justice Department and Equal Employment Opportunity Commission announced October 20.
Investigators said Instacart required applicants for PERM roles to mail their applications, while its usual process accepted applications electronically. They also alleged some U.S. applicants were not considered promptly.
Under the settlement, up to $4 million will go to applicants and people deterred from applying between December 2023 and February 2026. Instacart will pay a separate $1 million civil penalty.
The agreement also requires Instacart to accept electronic applications for PERM positions, change its recruiting practices, train personnel and undergo monitoring. The claims were settled; the agreement is not a finding that the company admitted liability.
For employers hiring through PERM, the case highlights a concrete compliance risk: using an application process for those roles that differs from the company’s usual recruitment method may disadvantage U.S. applicants.
