Derek Mobley filed a lawsuit against Workday, an AI-based hiring tool provider, claiming its system unfairly rejected his job applications due to his age. Mobley, who initially sought relief for his individual case, is now pushing to expand the lawsuit into a national class action. The expanded claim aims to include millions of applicants over 40 who have been similarly rejected by Workday’s AI system since 2020, arguing they all suffered from the same discriminatory screening practices.
Mobley and four other applicants over 40, who submitted over 3,000 job applications to companies using Workday’s AI system, allege that they were all rejected despite being qualified for the positions. They contend that many of these rejections were processed by the AI system, evidenced by automated notifications sent at odd hours. The plaintiffs are seeking to represent a larger group of affected job seekers, arguing that the discrimination is systemic and that those impacted should be compensated collectively.
This case could have major consequences for employers using AI in hiring processes. If the class action is certified, it may result in extensive legal challenges for companies relying on AI tools. Employers must ensure their AI systems adhere to anti-discrimination laws, thoroughly evaluate their AI vendors, and be ready for the potential risks of class action lawsuits. To better protect their businesses from legal risks in the evolving AI landscape, employers should consider incorporating indemnification clauses in contracts with AI vendors and implementing an AI Governance program
If you have any questions regarding AI compliance in the workplace, please contact us at info@mnklawyers.com.
