A US federal judge has ruled that Workday must face a proposed class action lawsuit alleging its AI-powered hiring software discriminated against job applicants based on race, age, and disability. The case, Mobley v. Workday, is considered the first to broadly target the algorithmic decision-making behind AI screening tools rather than individual employers. Judge Rita Lin rejected Workday's jurisdictional defense and allowed claims related to discrimination against Black applicants, women, and people over 40 to proceed, while dismissing claims related to Asian American applicants. The central legal question is whether AI software vendors can be held liable for discriminatory outcomes produced by their tools, a ruling that could have sweeping implications for the widespread use of algorithmic hiring platforms across US employers.
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