A federal judge has ruled that human resources software company Workday must face a landmark lawsuit alleging that its artificial intelligence-powered hiring tools discriminated against job applicants based on age, disability, race, and other protected characteristics.
U.S. District Judge Rita Lin in San Francisco rejected most of Workday’s efforts to dismiss the proposed class-action case, allowing plaintiffs to pursue claims that the company’s screening technology unfairly filtered candidates during the hiring process.
The lawsuit, first filed in 2023 by job applicant Derek Mobley, argues that Workday’s algorithms disproportionately excluded older workers, people with disabilities, and Black applicants from employment opportunities.
The case is considered one of the most significant legal challenges to the growing use of AI in recruitment. Plaintiffs contend that automated screening systems may rely on data patterns that replicate existing workplace biases, leading to discriminatory outcomes even without explicit intent.
The lawsuit also alleges that employment gaps and other proxy indicators may have been used in ways that disadvantaged applicants with disabilities.
Workday has denied the allegations, maintaining that its software evaluates applicants based on qualifications and that the company follows responsible AI practices designed to prevent discrimination.
The ruling allows the case to move forward toward further discovery and potential trial.
