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Instacart agrees to $5 million federal settlement over hiring allegations
Maplebear, Instacart’s San Francisco-based parent company, will pay $1 million and set aside $4 million for applicants after federal agencies alleged its hiring process disadvantaged U.S. workers. The company says it denies wrongdoing and hires based on qualifications.
Instacart’s parent company has agreed to pay $5 million to resolve federal allegations that its hiring practices made it harder for U.S. workers to compete for jobs while favoring applicants with temporary work visas.
The Department of Justice and Equal Employment Opportunity Commission announced the settlement Tuesday, Oct. 20. Under its terms, Maplebear Inc. will pay a $1 million civil penalty and create a $4 million fund to compensate applicants who may have been affected by the alleged practices.
The agencies said the conduct occurred from December 2023 through February 2026. In some cases, the Justice Department alleged, U.S. applicants had to mail documents instead of submitting them electronically, creating additional barriers and delaying consideration of their applications.
Instacart spokesperson Michael Campbell said the company maintains that its practices followed applicable laws and regulations, but welcomed the resolution. He said Instacart does not target or favor foreign nationals and selects candidates based on skills, business needs and experience.
The settlement concerns the hiring practices of the San Francisco-based grocery delivery company, whose parent is publicly known as Maplebear. The federal agencies’ allegations are not findings of wrongdoing, and the company denied wrongdoing as it agreed to resolve the matter.