Instacart Reaches $5 Million Settlement Over H-1B Job Advertising Practices

Instacart has agreed to pay $5 million in a settlement concerning its advertising practices for roles linked to the H-1B visa to green card pathway. The issue arose from allegations that Instacart limited certain applications to paper submissions, thus potentially discriminating against U.S. workers. OpenAI faced a similar situation in August, settling with the Department of Justice (DOJ) due to job postings allegedly favoring temporary visa holders.

The settlement centers on the PERM process, which allows temporary workers to gain permanent residency. It was alleged that Instacart accepted only paper applications for green card-linked roles while other roles took electronic applications. This created barriers for U.S. workers. Recent actions by the Trump administration have included suspending companies like Microsoft and Adobe’s access to the program over similar issues.

Newsweek highlighted concerns about the H-1B green card pathway in 2025, noting companies might exploit loopholes to avoid hiring Americans. Under the Department of Labor’s PERM process, employers must prove positions can only be filled by immigrant workers by advertising in multiple outlets. Instacart and OpenAI were noted for allegedly discriminatory practices during this process.

Jobs.Now expressed concern that job ads appeared aimed at immigrants, hindering American applicants’ visibility. Legal action threats from Instacart were criticized as attempts to suppress free access to job listings.

• The DOJ and EEOC investigated Instacart’s practices, finding intentional discrimination against American workers during the PERM process.
• Affected workers between December 2023 and February 2026 will receive $4 million from the settlement.
• Another $1 million will be paid as a civil penalty to the U.S.
• Instacart will change its PERM processes to ensure compliance with employment laws.

Instacart asserted its commitment to hiring American workers, suggesting its practices complied with current laws while seeking modernized recruitment processes.

Federal authorities are increasingly scrutinizing the PERM recruitment process to prevent discrimination against U.S. workers, as seen in similar cases involving OpenAI and Cloudera. The Trump administration has emphasized the need for reforms while recognizing immigrant contributions.

Instacart’s resolution is part of broader enforcement trends. However, others continue avoiding American applicants. Jobs.Now demands quicker DOL action against alleged discrimination.