AI News Monitor

Workday, a leading human resources software company, is facing a collective action lawsuit alleging that its artificial intelligence-powered hiring tools discriminate against older job applicants. The case, which could set a precedent for the use of AI in employment decisions, highlights growing concerns about algorithmic bias in recruitment.

The lawsuit, initially filed in 2023 by Derek Mobley, claims that Workday’s screening technology systematically rejected him from more than 100 jobs over seven years due to his age, race, and disabilities. Four additional plaintiffs, all over 40, have since joined the suit, alleging similar age-based discrimination.

Court documents state that the plaintiffs submitted hundreds of applications through Workday’s platform, only to receive rapid rejections—sometimes within minutes—suggesting their resumes were dismissed without human review.

On Friday, U.S. District Judge Rita Lin allowed the case to proceed as a collective action, opening the door for others with similar claims to join. The lawsuit seeks unspecified damages and demands changes to Workday’s hiring algorithms.

Workday, used by over 11,000 organizations worldwide, denies the allegations. In a statement, the company called the suit “without merit” and emphasized that the ruling was preliminary. “We’re confident that once Workday is permitted to defend itself with the facts, the plaintiff’s claims will be dismissed,” a spokesperson said.

The case underscores broader anxieties about AI in hiring. Experts warn that even unintentional biases in training data—such as favoring resumes with certain keywords—can perpetuate discrimination. In 2018, Amazon scrapped an AI recruiting tool after discovering it favored male candidates.

As companies increasingly rely on automation for hiring, the Workday lawsuit may force a reckoning over how algorithms shape employment opportunities—and who gets left behind.