Workday is facing a collective action lawsuit over allegations that its AI-driven applicant screening tools discriminate against job candidates over 40 years old, following an order from a California judge earlier this month. This is the latest escalation in an ongoing legal battle that could set a precedent for how organizations can use AI and algorithmic technologies for hiring—a topic that’s top of mind for HR leaders as companies race to adopt the technology.
Last year, Derek Mobley—a Black man over the age of 40 who self-identifies as having anxiety and depression—sued Workday, alleging that the software firm’s screening tools caused him to be rejected from the more than 100 jobs he has applied to with companies using Workday’s platform since 2017. He alleges that Workday’s algorithmic decision-making tools discriminated against him based on his age, race, and disability.
After the lawsuit was initially filed, Workday asked the court to dismiss it, claiming that individual employers, and not Workday, rejected Mobley’s applications. The court denied this motion to dismiss, recognizing that Mobley’s age discrimination claim is plausible under the Age Discrimination in Employment Act, allowing Mobley’s lawsuit to proceed and enabling other people to join with similar age discrimination allegations against the firm.
Four other plaintiffs have since joined the lawsuit with similar allegations against Workday. In the most recent filing, these plaintiffs allege that they have received rejection emails for jobs shortly after applying despite meeting the qualification requirements. In some cases, the plaintiffs claim that they have received these quick rejections outside of regular business hours, CNN reports.
Workday’s platform is used by more than 10,000 companies to collect, process, and screen job applications. Its HiredScore AI service utilizes “responsible AI” to grade top candidates and reduce time-to-hire. The company has dismissed all of the claims made in the lawsuit, claiming that it does not screen candidates for its customers and that it does not make employment recommendations or hiring decisions.
