Federal Court Certifies Nationwide Class Action Against Workday AI Over Age Discrimination

A class-action lawsuit against Workday, a major human resources software provider, alleges that its AI-driven applicant screening tools discriminate against candidates over 40, as well as based on race and disabilities. The suit, initially filed by Derek Mobley who claims over 100 rejections due to these biases, has been expanded by a federal judge to include additional plaintiffs and potentially hundreds of thousands of similarly affected individuals nationwide. Plaintiffs argue that Workday's AI system issues rapid, automated rejections without human review, disproportionately impacting older applicants and violating the Age Discrimination in Employment Act. Workday denies these claims, asserting their technology is compliant with laws and does not discriminate, while highlighting the challenge of identifying all potentially affected users. The case is notable as the first to preliminarily certify a collective action based on alleged AI-driven age discrimination in hiring, setting a precedent with significant implications for employers using AI recruitment tools. The lawsuit proceeds amid ongoing debates over the use of disparate impact theory in discrimination claims and regulatory scrutiny of AI in employment decisions.