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A group of job seekers is asking a federal judge to certify a lawsuit against Workday as a class action, raising a broader question about who should be responsible when artificial intelligence tools allegedly discriminate against job applicants.
Reuters reported that the plaintiffs filed their class-certification request on September 14 in federal court in San Francisco.
The case could have broader implications as employers increasingly use AI to screen job applications. Workday reportedly counts two-thirds of Fortune 500 companies as customers.
The lawsuit alleges that Workday’s AI-powered hiring tools disproportionately harm Black applicants, women, people over 40, and people with disabilities.
The plaintiffs allege that Workday uses information about employers’ existing workforces to train its AI to identify desirable applicants, potentially reproducing existing racial and other biases. Workday disputes that claim.
Derek Mobley, a Black man over 40 with a disability, filed the lawsuit in February 2023. He alleges he applied for more than 100 jobs at companies using Workday’s AI hiring tools and was rejected each time, Reuters reported.
Some of the rejections, including Mobley's, allegedly came within hours of his applications, which plaintiffs say raised questions about whether automated screening, rather than individualized human review, was involved. His resume also lists Morehouse College, which plaintiffs argue could have served as a potential indicator of his race.
A federal judge previously allowed the case to proceed under a “disparate impact” theory, which addresses whether a seemingly neutral employment practice disproportionately affects a protected group.
The judge rejected claims that Workday intended for its tools to discriminate, Reuters reported.
Workday has denied wrongdoing, saying its AI tools evaluate job qualifications rather than protected characteristics. The company also argues that its customers control how applicants are sorted, reviewed, and rejected, Reuters reported.
A hearing on whether the case can proceed as a class action is scheduled for March 9, 2027.
The potential reach of the case is significant. According to the plaintiffs, citing testimony from a Workday witness, more than 356 million applications were submitted through Workday Recruiting in 2024, while more than 27 million job offers were extended that year.
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