A Californian federal judge has ruled that the large recruitment tech company, Workday, will face a nationwide class-like lawsuit alleging its algorithm-based screening tools discriminated against job seekers aged 40 or over, marking a significant step in addressing potential biases inherent in AI-powered hiring systems.
Derek Mobley, a Black man over the age of 40 has brought forward this case, saying that over several years, he has applied to more than 100 jobs with companies that use Workday’s AI based hiring application and yes, you guessed it, was rejected every single time.
Thousands of companies use Workday’s AI-based screening tools, which can include a range of psychometric assessments. These tools interpret a candidate’s qualifications through advanced algorithmic methods and can automatically reject or advance them along in the recruitment process – with no interaction from a hiring manager or recruiter.
Mobley lawsuit claims that Workdays’ AI recommendation system has a negative impact on older applicants, deeming it discriminatory. Workday has requested that the case be dismissed since they are not the actual employers making decisions, however the judge has disagreed and allowed Mobley to continue his lawsuit in mid 2024.
In February 2025, Mobley then asked the court to allow him to expand his age discrimination claim to a national action, where millions of other US candidates over the age of 40 could join the suit, and in Mid-May, this was approved.
Pending, National Class Action…
Everyone should be paying attention to this one and it should definitely serve as a wake up call for all employers, not just HR/Talent professionals. It’s time to take proactive steps to ensure you have an AI review and audit process in place and are in fact monitoring it.
The fact is all new ‘tools’, ‘trends’ can create some kind of legal exposure, especially when it comes to impacting people and their jobs, even more so people who are protected by various laws, and ‘intention’ will not save you.
A significant ruling and probably the first of its kind as it challenges the use of AI in hiring practices and highlights the potential for algorithmic bias that lots of critics have been discussing over the last few years. Serving as a warning to employers and AI vendors.
Stay tuned for more updates on this case and its implications for the future of AI in employment decisions, and share your thoughts in the comments!
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