Workday Faces Class Action Over AI Hiring Tool
A federal court in the Northern District of California has authorized notice to potential class members in a lawsuit against Workday. The collective action alleges the company's AI-powered hiring software engages in age discrimination, raising legal questions about the use of AI in HR technology.
- The lead plaintiff, Derek Mobley, alleges he was rejected from over 100 jobs after applying through Workday's platform. Mobley, who is over 40, Black, and identifies as having anxiety and depression, claims the rejections were the result of discriminatory algorithms. - The lawsuit is based on a "disparate impact" theory, which does not require proof of intentional discrimination. The core question is whether Workday's AI screening tools disproportionately harm applicants over the age of 40, a protected class under the Age Discrimination in Employment Act (ADEA). - Workday's defense argues it is not the employer making the hiring decisions, but a federal judge ruled the case can proceed, stating Workday could be considered an "agent" of the employers. The court noted that Workday's software participates in the decision-making process rather than just implementing criteria set by employers. - The potential class for the collective action is massive, with Workday representing that 1.1 billion applications were rejected using its software during the relevant period, potentially including hundreds of millions of members. Judge Rita Lin stated that "allegedly widespread discrimination is not a basis for denying notice" to potential class members. - Four other plaintiffs have joined the case, describing similar experiences of rapid rejections after applying for hundreds of jobs via the Workday platform. - The court has granted preliminary certification for a nationwide collective action, allowing individuals aged 40 or over who were denied employment recommendations through Workday's platform since September 24, 2020, to opt into the lawsuit. - This case is one of the first major legal challenges to the use of AI and algorithmic tools in hiring under federal employment discrimination laws. The U.S. Equal Employment Opportunity Commission (EEOC) has also weighed in, stating that Workday should face the claims. - The lawsuit also alleges discrimination based on race and disability, though the current collective action is certified for the age discrimination claim under the ADEA.
