Trump isn’t letting anyone off the hook.
The Trump administration has secured a major $5 million settlement against one of America’s best-known grocery delivery companies following a federal investigation into hiring practices that allegedly discriminated against American workers.
The Department of Justice announced Tuesday that Instacart, the popular grocery delivery platform, has agreed to pay millions of dollars to resolve allegations that it unfairly favored certain foreign visa holders over qualified U.S. job applicants.
The agreement follows a joint investigation by the Justice Department’s Civil Rights Division and the Equal Employment Opportunity Commission (EEOC).
Federal investigators discovered that Instacart used hiring procedures that placed additional obstacles in front of American applicants, potentially denying them a fair opportunity to compete for available jobs.
The settlement represents another significant enforcement action under President Donald Trump’s administration, which has increased scrutiny of employers accused of violating federal hiring discrimination laws.
DOJ Exposes Unfair Treatment of American Job Applicants
According to the Department of Justice, Instacart required American workers applying for certain positions to submit their applications through traditional mail.
However, the company’s normal recruitment process allowed applicants to submit their information electronically.
Federal officials determined that this difference created unnecessary burdens for American job seekers and prevented many applications from receiving timely consideration.
The investigation focused on hiring practices connected to the Permanent Labor Certification program, commonly known as PERM.
This federal program allows employers to sponsor eligible foreign workers for permanent residency after making a legitimate effort to recruit qualified American workers.
Investigators found evidence that Instacart’s recruitment practices favored employees holding temporary employment visas.
The alleged discriminatory conduct occurred between December 2023 and February 2026.
Instacart Ordered to Pay Millions in Settlement
Under the agreement, Instacart must establish a compensation fund of up to $4 million for job applicants who were affected by the disputed hiring practices.
The company must also pay an additional $1 million in civil penalties to the federal government.
Compensation may include lost wages and other damages for eligible individuals who were denied fair consideration or discouraged from applying.
However, the agreement goes beyond financial penalties.
Instacart must make significant changes to its recruitment procedures, including posting certain employment opportunities on its public careers website and accepting electronic applications.
The company must also revise its employment policies, provide anti-discrimination training, and comply with federal monitoring and reporting requirements.
These measures are intended to ensure that American applicants receive fair treatment when competing for jobs.
Trump Administration Sends Message to Employers
The Instacart settlement is part of a broader federal effort to investigate companies accused of giving unlawful hiring advantages to temporary visa holders.
The Justice Department relaunched its Protecting U.S. Workers Initiative in 2025, renewing a program originally established during Trump’s first administration.
The initiative targets employment practices that violate federal protections against citizenship-based discrimination.
According to the DOJ, the Instacart agreement marks the 15th settlement secured since the initiative was revived.
Across both Trump administrations, the program has obtained more than $34 million in back pay for American workers and over $16 million in civil penalties.
Assistant Attorney General Harmeet Dhillon emphasized that the Justice Department intends to continue holding employers accountable when their hiring practices violate federal law.
The administration’s enforcement efforts highlight the importance of ensuring that American job applicants are not unlawfully disadvantaged during the recruitment process.
What Instacart Says About the Allegations
Instacart has maintained that its hiring practices complied with applicable laws and regulations.
In a statement provided to Fox News Digital, a company spokesperson emphasized that Instacart employs thousands of American workers and remains committed to recruiting qualified U.S. applicants.
The company also said it was pleased to resolve the matter and return its attention to serving customers, retailers, shoppers, and business partners.
The settlement resolves the government’s allegations without establishing that every applicant was personally harmed.
However, Instacart must comply with the financial obligations and recruitment changes outlined in the agreement.
What This Means for American Workers
The case raises an important question about how employers treat American applicants when participating in federal immigration programs.
Although businesses may legally hire foreign workers, federal law prohibits certain forms of employment discrimination involving citizenship status and national origin.
Employers using the PERM program must conduct legitimate recruitment efforts and cannot create unlawful barriers that make it harder for protected U.S. workers to compete.
For job seekers, the Instacart settlement reinforces the importance of fair hiring procedures and equal access to employment opportunities.
The Justice Department has also encouraged individuals who believe they were affected by Instacart’s practices between December 2023 and February 2026 to contact federal officials regarding possible compensation.
Potentially affected applicants can email Instacart@eeoc.gov to provide their information for the claims process.
Federal Officials Promise Continued Enforcement
The Instacart agreement also reflects the EEOC’s broader efforts to investigate national origin discrimination involving American workers.
Through an enforcement effort known as Project Firewall, the agency has pursued employers accused of illegally preferring foreign workers over applicants of American national origin.
Federal officials say they intend to continue investigating complaints and pursuing penalties when employers violate the law.
For Instacart, the result is a multimillion-dollar settlement, changes to its hiring procedures, and ongoing compliance obligations.
For American workers, the case reinforces a basic legal protection: Qualified applicants should not face unlawful disadvantages because an employer prefers workers holding temporary visas.
The settlement also sends a message to businesses nationwide that federal hiring rules carry real financial consequences when they are violated.
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