Instacart’s Settlement Over Discriminatory Hiring Practices
Instacart is set to pay $5 million to U.S. workers who were allegedly affected by the way it advertised roles linked to the H-1B visa to green card pathway. This settlement follows a similar agreement in August between OpenAI and the U.S. Department of Justice (DOJ) over job postings that were difficult for American workers to find.
The issue arises from allegations that Instacart only accepted paper applications for roles tied to green cards, while electronic applications were accepted for other positions. This practice allegedly created barriers for U.S. workers. The settlement comes amidst increased scrutiny from the Trump administration on the PERM process, with recent actions against companies like Microsoft and Adobe over alleged fraud.
Concerns Around the H-1B Green Card Pipeline
In August 2025, Newsweek reported concerns that companies were exploiting the green card process to bypass hiring American workers. Under Department of Labor rules, companies must advertise roles to prove that positions held by temporary visa holders cannot be filled by U.S. workers before granting a green card. Ads must appear in major newspapers, on state workforce agency sites, and via other methods.
OpenAI and Instacart were highlighted for requesting resumes through mail, suggesting a preference for immigrant workers. A website, Jobs.Now, emphasized that listings seemed aimed at immigrants, decrying this as discrimination.
Instacart’s PERM Process Settlement: What to Know
The DOJ, alongside the U.S. Equal Employment Opportunity Commission (EEOC), investigated Instacart’s alleged discrimination against U.S. workers based on citizenship status and national origin. They found evidence of preference for temporary visa holders through burdensome application processes for American workers.
The DOJ announced that American workers affected between December 2023 and February 2026 would receive payouts, with $4 million from the settlement allocated to this fund. The other $1 million is a civil penalty to the U.S. Instacart agreed to amend its PERM processes, train staff on compliance, and implement monitoring measures.
An Instacart spokesperson stated, “We are committed to hiring U.S. workers and are pleased to resolve this matter, focusing on our mission for customers, shoppers, retailers, and brands.”
A Broader Trend of Enforcement
Federal authorities have increased scrutiny of employers’ use of the H-1B and green card pathway. OpenAI settled for $3.2 million over similar allegations. Cloudera reached a separate resolution involving a two-year exclusion from the PERM program due to application issues.
The Trump administration adopted a stricter approach to the H-1B program, with then-Vice President JD Vance criticizing the system. Instacart argued that the PERM rules were outdated, reflecting a call for reform to better align with modern recruitment.
Calls for action stress that the Instacart settlement is a step but not enough. Jobs.Now advocates for the Department of Labor to eliminate PERM discrimination, ensuring Americans have first access to jobs.