- Workday’s AI screening software under fire for discriminatory biases
- Tenants usually bear the responsibility, but software that replaces people can be liable
- The case must also consider AI much more broadly, including historical biases and shifting responsibilities
At a hearing in June 2026, Judge Rita Lin indicated she was likely to reject Workday’s latest attempt to dismiss claims brought under California law related to a 2023 discrimination suit.
Three years ago, Derek Mobley accused the company of rejecting him from more than 100 jobs after applying through the company’s recruiting systems on the basis that he is black, over 40 years old and has anxiety and depression.
But instead of suing the individual employers, Mobley is pursuing action against Workday itself, alleging that its AI-powered hiring software is responsible for discriminatory action.
Workday is on track to face lawsuits over AI-powered hiring software
Workday has argued that California’s employment discrimination laws should not apply when applicants live — or jobs are located — outside of California.
Pakinomist notes that more than four out of five US employers and nearly all Fortune 500 companies now use AI-powered hiring or applicant-screening tools, the ongoing case marks an important potential shift in its regulation.
In the past, employers have been held responsible for discriminatory hiring, but the lawsuit is now examining whether software developers and AI vendors should bear any responsibility.
In an earlier hearing in 2024, the judge questioned whether Workday could also qualify as an employer because it performs screening tasks that would normally be performed by human employees on HR teams.
While this specific case concerns Workday, the court must also examine how training data can influence bias and who is responsible for the outcome—the results could have a much larger impact than just a fine for Workday.
“Our technology only looks at job qualifications, not protected characteristics like race, age or disability,” the company added in a statement.
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