AI Resume Screening Faces Discrimination Allegations in Lawsuit Against Workday
A lawsuit against Workday claims the company’s AI-powered screening technology discriminates against job applicants based on race, age, and disability, raising new legal concerns about employers’ use of artificial intelligence in hiring decisions.
Derek Mobley filed the discrimination lawsuit against the human resources software company in 2023, alleging he applied for hundreds of positions over seven years but was repeatedly rejected. Four other plaintiffs over 40 have joined the suit, claiming the AI recommendation technology that screens and ranks job applicants disproportionately prevents older workers from securing employment.
California federal judge Rita Lin ruled that the case can proceed as a collective action, allowing Mobley to notify similarly situated individuals about the lawsuit and give them the opportunity to join.
Workday stated, “We continue to believe this case is without merit. This is a preliminary, procedural ruling at an early stage that relies on allegations, not evidence.” The company is confident that once they can defend themselves with facts, the plaintiff’s claims will be dismissed.
The lawsuit highlights growing concerns about AI use in hiring processes. Human resources professionals increasingly rely on AI technology to screen and rank applications, but civil rights experts warn that these systems may contain hidden biases based on protected characteristics like gender and race.
“AI tools are trained on large datasets and make predictions based on correlations and patterns. Many tools used by employers are trained on data about their own workforce and hiring processes, which reflects existing institutional and systemic biases,” warned the American Civil Liberties Union.
A similar situation occurred at Amazon in 2014 when engineers developed an algorithm to review resumes. The system was abandoned a year later because it discriminated against women applying for technical positions.
Mobley, who has a finance degree from Morehouse College and experience in financial, IT, and customer-service roles since 2010, reported receiving automated rejections repeatedly, often within hours of applying. He claims these systems are not ‘race neutral, disability neutral, or age neutral.’
The lawsuit against Workday raises important questions about the legal exposure for AI vendors and employers relying on this technology for hiring decisions. As AI continues to transform the recruitment process, concerns about bias and discrimination are likely to grow.
