Instacart settles US probe over foreign worker recruiting for $5 million

By Daniel Wiessner

Oct 20 (Reuters) - Instacart parent Maplebear CART.O will pay $5 million to settle a federal investigation into claims that the grocery delivery company discriminated against American workers through its recruiting and hiring practices, two US agencies said on Tuesday.

The US Department of Justice and Equal Employment Opportunity Commission said they had uncovered evidence that Instacart preferred to hire foreign workers through an employment-based green card program rather than Americans for unspecified jobs.

Maplebear will pay $1 million in penalties and up to $4 million to affected people who applied for jobs between December 2023 and February 2026, the agencies said. The company also agreed to post job openings available to foreign workers on its public website and accept electronic applications from Americans.

Instacart, in a statement provided by a spokesperson, said the company encourages qualified US job seekers to apply for jobs and seeks to attract broad pools of candidates for open positions.

"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," the company said.

President Donald Trump, a Republican, has sought to crack down on what he says are widespread abuses of foreign worker visa programs. The Justice Department has since last year compiled more than a dozen settlements with companies accused of discriminating against Americans, including a $3.2 million deal with OpenAI announced in August. OpenAI denied claims that it discouraged Americans from applying for jobs.

The EEOC, which enforces federal laws banning workplace discrimination, has separately announced a handful of settlements and lawsuits against companies accused of bias against American workers.