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AII-1001-95793
AllegedThe record is a lawsuit, complaint or accusation that has not been decided.

Workday faces lawsuits over AI-powered discriminatory hiring

Workday faces a class action lawsuit alleging that its AI-powered job screening technology discriminates against applicants over age 40 and on the basis of race and disability. The lead plaintiff claims he was rejected from over 100 job postings on the platform over seven years, with several other applicants over 40 joining the case.

23 May 2025 Β· Workday Β· Discrimination and fairness
23 May 2025
AII-1001-957936 sources ↓
Quick facts
Category
Discrimination and fairness
Country
United States
Source
law360.com
Date
23 May 2025
Drafted by
Raidu Incident Detection

What happened

Derek Mobley initiated a lawsuit against Workday in 2023, claiming the company's algorithms and AI tools systematically rejected older job applicants. He claims Workday's software caused him to be rejected from more than 100 jobs on the platform over seven years due to his age, race and disabilities.

Four additional plaintiffs, all over age 40, have joined the lawsuit with age discrimination allegations. Together, the group claims they submitted hundreds of job applications through Workday and were rejected each time, sometimes within minutes or hours.

Reported impact

The plaintiffs allege they were systematically rejected from job opportunities through Workday's hiring platform based on age, race and disabilities.

Index analysis

The case raises concerns about the use of automated hiring systems and could potentially set a precedent for how companies use certain types of AI in recruitment.

Governance controls

Workday has denied the allegations, stating in a statement to multiple outlets that it continues to believe the case is without merit.

Classification

Category
Discrimination and fairness
Industry
Business processes and support services
Country
United States
Harm status
Actual harm
Intent
Unknown
Timing
Post-deployment
Harm types
Economic or property, Reputational, Human or fundamental rights
Harmed
Workers
Failure modes
Biased model
Consequences
Litigation
AI systems
Workday job screening technology
Regulations
FCRA (cited)

Sources and evidence

This record was researched and written by the Index, based on the following original reporting.

law360.com
Workday Hiring Bias Suit Wins Collective Status - Law360
17 May 2025
Lexology
AI Screening Tools Under Scrutiny: Federal Court Preliminarily Certifies ADEA Collective Action
21 May 2025
Daily Mail Online
Bombshell lawsuit says major HR firm discriminating against over-40s
23 May 2025
Going Concern
Judge Gives the OK to Proceed With a Class Action Against Workday For Alleged Old Fart AI Bias in Hiring
23 May 2025
Inc.
Discrimination Lawsuit Against Workday's Job Screening AI Gets Bigger
23 May 2025
KSBY
Lawsuit claims Workday's AI job screening technology discriminates against people
23 May 2025