Instacart reached a settlement with the Department of Justice over allegations that its hiring practices discriminated against U.S.-born job seekers in favor of foreign workers holding temporary visas.
Why it matters: The joint enforcement effort from the DOJ and the Equal Employment Opportunity Commission is representative of the administration’s all-of-government approach to going after employers over their use of foreign workers and alleged unlawful DEI practices.
Background: Instacart was advertising jobs through the Permanent Labor Certification (PERM) program, which lets employers hire temporary visa holders and sponsor them for permanent resident status as long as they have also made a good-faith effort to hire U.S. workers.
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The DOJ and EEOC claimed the company burdened U.S. applicants by requiring them to physically mail applications for PERM-listed jobs, while it accepted electronic applications for its standard recruiting.
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As a result, many U.S. workers who applied were not considered in a timely way, according to the DOJ.
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Instacart said its hiring practices complied with U.S. laws and regulations, but it agreed to settle in order to remain focused on its business.
The big picture: Instacart is the latest tech company to settle with the government over allegations that it favors foreign workers for certain jobs. DOJ officials described it as the fifteenth such settlement reached by the Civil Rights Division under its current leadership. Meanwhile, last week, the administration banned several major tech companies from using U.S. visa programs entirely.
CHRO considerations:
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Review application process parity. Any PERM role should be open to applicants through the same portals, formats, and timelines as every other posting.
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Look at who runs the process. PERM recruitment is often handled by outside immigration counsel, but the liability stays with the employer. HR, talent acquisition and legal should jointly own and review these workflows.
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Expect continued scrutiny. With DOJ and the EEOC coordinating, large sponsors of employment-based green cards should assume their recruitment records could be requested and should document good-faith consideration of U.S. applicants accordingly.
