Court Advances Lawsuit Over AI Hiring Bias

- The lawsuit, *Mobley v. Workday*, was initiated by Derek Mobley, an African American applicant over the age of 40 who identifies as having a disability. He claims he was rejected from over 100 positions at companies using Workday's screening tools. - The case centers on a "disparate impact" claim, arguing that Workday's AI tools systematically penalize older candidates, even without intentional bias. The lawsuit also includes allegations of discrimination based on race and disability. - Workday has argued that it is not the employer and that its clients are responsible for hiring decisions. However, a federal judge ruled the case can proceed, stating that Workday's software acts as an "agent" for employers by actively "recommending some candidates to move forward and rejecting others." - The U.S. Equal Employment Opportunity Commission (EEOC) has weighed in, filing a brief in support of the plaintiff. The EEOC argues that employers are responsible for discriminatory outcomes from AI tools, even if the technology is from a third-party vendor. - In May 2025, a judge granted the case conditional certification as a nationwide collective action under the Age Discrimination in Employment Act (ADEA). This allows the case to represent all applicants aged 40 and over who were allegedly denied employment recommendations through Workday's platform since September 2020. - The court has ordered Workday to identify customers who used its AI screening features, including "Candidate Skills Match" and "HiredScore AI," to notify potential members of the collective action. Workday had previously stated that 1.1 billion applications were rejected using its tools during the relevant period.