Eightfold AI sued for evaluating job applicants without notice
Job applicants Erin Kistler and Sruti Bhaumik filed a proposed class action lawsuit against Eightfold AI in California state court, alleging the AI hiring platform evaluated job seekers without their knowledge or consent, violating the Fair Credit Reporting Act and California employment law. The lawsuit is reportedly the first in the U.S. to accuse an AI hiring company of such violations.
What happened
Eightfold AI, used by Microsoft, PayPal and other Fortune 500 companies, was sued in California state court on behalf of all U.S. job seekers who applied for jobs at companies using its tools. Job applicants Erin Kistler and Sruti Bhaumik filed the proposed class action on Tuesday, January 21, 2026.
The plaintiffs allege that Eightfold compiled reports used to evaluate and screen job applicants without giving them notice or a chance to dispute errors. Eightfold provides tools that assess applicants and predict job fit using data from online resumes and job listings.
Reported impact
Job applicants allegedly were not informed when Eightfold's tools were used to evaluate them, and were not given the opportunity to view or challenge the inferences and assessments made about them.
Index analysis
The lawsuit claims Eightfold violated the Fair Credit Reporting Act and a California law that gives consumers the right to view and challenge credit reports used in lending and hiring. According to the law firms filing the case, this is the first U.S. lawsuit to accuse an AI hiring company of violating the Fair Credit Reporting Act.
Eightfold spokesperson Kurt Foeller stated that the platform operates on data shared by candidates or provided by customers, and does not scrape social media. Foeller said the company is committed to responsible AI, transparency, and compliance with applicable data protection and employment laws.
Classification
Sources and evidence
Sources not yet published
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