Employment Discrimination Lawsuit: AI Tools and Applicants

CALIFORNIA – A federal court in California has allowed a frustrated job applicant to proceed with a discrimination lawsuit against an artificial intelligence (AI) provider after over 100 employers using the provider’s selection tools rejected him.

The judge’s decision, dated July 12, permits the class action lawsuit against Workday to proceed based on the theory that Workday acted as an “agent” for all the employers who rejected the applicant and that its algorithmic selection tools were biased against his race, age, and disability status.

Here’s a summary of the allegations in the lawsuit: 

Derek Mobley is a Black man over 40 years old who identifies as suffering from anxiety and depression. He holds a finance degree from Morehouse College and has extensive experience in various finance roles, such as IT help desk and customer service.

Between 2017 and 2024, Mobley applied for over 100 jobs with companies using Workday’s AI-based hiring tools and claims he was rejected each time. He would see a job posting on a third-party site (such as LinkedIn), click on the job link, and be redirected to Workday’s platform.

Thousands of companies use Workday’s AI-based applicant selection tools, which include personality and cognitive tests. These tools then interpret a candidate’s scores through advanced algorithmic methods and can automatically reject or advance them in the hiring process.

Mobley alleges that the AI systems reflect illegal biases and rely on biased training data. He points out that his race could be identified because he graduated from a historically Black college, his age could be inferred from his graduation year, and his mental disabilities might be revealed through the personality tests.

He filed a federal lawsuit against Workday alleging racial discrimination under Title VII and Section 1981, age discrimination under the ADEA, and disability discrimination under the ADA.

But Mobley did not file just any lawsuit. He filed a class action, seeking to represent all applicants like him who were allegedly not hired due to the purportedly discriminatory selection process.

Workday sought to dismiss the claim, arguing that it was not the employer making the employment decisions regarding Mobley. However, after over a year of procedural disputes, the judge allowed Mobley to continue with his lawsuit.

It’s important to note that this case is in the very early stages of litigation, and Workday has not yet provided a direct response to the allegations, so these points should be taken with caution and may even be untrue.

In a landscape where technology plays an increasingly crucial role in hiring, AI systems must be adequately monitored and regulated to avoid any form of discrimination.

Mobley’s lawsuit could set an important precedent and force companies to reevaluate and adjust their selection processes to ensure they are inclusive and equitable for all applicants.

Derek Mobley’s lawsuit against Workday highlights the challenges and risks associated with using AI in hiring processes. As this case continues to develop, companies and technology developers need to pay close attention and work diligently to eliminate any bias in their selection tools.

Justice and fairness in employment are fundamental rights that must be protected, and this case could be a crucial step toward achieving that goal.

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