A federal judge has ordered Workday (NASDAQ: WDAY) to disclose the full list of employers using AI-powered hiring tools. This development is part of a class-action lawsuit filed against the company, which alleges that its software discriminates against job applicants based on race, age, and disability. The ruling could have significant implications, potentially exposing the named employers to legal challenges.
The lawsuit, filed in the US District Court for the Northern District of California, was initiated by plaintiff Derek Mobley. Mr. Mobley, an African-American man over the age of 40 who has depression and anxiety, claims he was rejected for 80 to 100 jobs since 2018 with companies that use Workday’s screening tools. The complaint alleges that Workday’s AI systems and screening tools rely on algorithms that may have been created with “conscious and unconscious” biases, leading to discriminatory hiring practices. The suit seeks to represent other applicants who believe they were similarly discriminated against.
The complaint further states that Workday’s screening tools function as an “employment agency” and allow customers to “manipulate and configure them in a discriminatory manner”. It is alleged that these tools use subjective practices that result in a disparate impact and treatment of applicants who are African-American, over the age of 40, or disabled.
The legal action against Workday was filed by the law firm Winston Cooks, LLC. Before filing the lawsuit, Mr. Mobley filed a charge of discrimination with the US Equal Employment Opportunity Commission (EEOC).
The lawsuit seeks several forms of relief, including:
- Certification of the case as a class action
- A declaratory judgment that Workday’s practices are unlawful
- A permanent injunction to prevent further discrimination
- An order for Workday to implement policies that provide equal employment opportunities
- Back pay, front pay, and other monetary relief for the affected individuals
- Compensatory and punitive damages
This case highlights the growing concerns surrounding the use of artificial intelligence in hiring and the potential for these technologies to perpetuate and even amplify existing biases. The outcome of this lawsuit could set a major precedent for using AI in the workplace.
People at Workday. Photo credit: Workday/Facebook.
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