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Human resources software giant Workday is at the center of a legal battle over claims its job screening technology discriminates against applicants based on age, race, and disability status.Â
A California district court judge has allowed the case to move forward as a collective action, potentially opening the door for more job seekers to join the lawsuit, according to CNN.
The case began when Derek Mobley, a Black man over 40 with disabilities, filed a lawsuit in 2023. He claimed Workday’s algorithm repeatedly rejected him for over 100 jobs across seven years, often within minutes of applying.Â
He argues the technology unfairly screens out candidates from protected groups. Four additional plaintiffs, all over 40, have since joined the case, citing similar experiences of immediate and unexplained rejection.
The plaintiffs allege that Workday’s tools use biased data patterns, which result in fewer opportunities for older applicants and those from underrepresented backgrounds. They point to rapid-fire rejections and automation as evidence that a human likely never reviewed their applications.
Workday, whose software is used by more than 11,000 organizations globally, maintains that it does not directly screen or reject candidates. The company says the claims lack merit and that its technology is not responsible for hiring decisions made by its clients.
The court’s ruling allows the plaintiffs’ legal team to notify other potential claimants, potentially broadening the case. Meanwhile, the lawsuit raises larger questions about the use of artificial intelligence in hiring and whether automated tools are perpetuating workplace discrimination.Â
Critics, including the ACLU, warn that even AI trained on seemingly neutral data can reinforce existing inequalities.
While the legal battle continues, the case highlights growing scrutiny over AI’s role in employment and could influence how companies deploy algorithmic tools in the future. The plaintiffs are seeking monetary damages and court-mandated reforms to Workday’s technology practices.
