Workday is at the center of a collective action lawsuit that alleges its artificial intelligence (AI)-powered hiring tools discriminate against applicants over 40 years old, violating the Age Discrimination in Employment Act of 1967.
Derek Mobley, a Black, disabled man in his 40s, filed a lawsuit in February 2023, claiming he applied for over 100 jobs without success, according to ITPro.
“Despite his qualifications, Mobley was allegedly denied employment for every one of the 100-plus applications that he submitted to companies using Workday’s platform,” the lawsuit states. Workday provides cloud-based software to support businesses’ financial management as well as the hiring process for new employees.
Workday’s initial motion to dismiss the case was granted, allowing for amendments to be made. However, the judge later denied its attempt to dismiss the newly amended complaint.
A judge ruled on May 16 that Mobley’s age discrimination claims could proceed as a collective action lawsuit, now including four additional plaintiffs who also allege they were denied hundreds of jobs without receiving an interview.
Applicants “are alike in the central way that matters: they were allegedly required to compete on unequal footing due to Workday’s discriminatory AI recommendations,” according to the court order.
One of the plaintiffs, Jill Hughes, said she received automated rejection notices within hours, or at unusual times outside standard business hours, after applying for jobs via Workday, according to The Independent. She alleged that “a human did not review the applications.”
In a statement to AFROTECH™, Workday responded to the claims: “We continue to believe this case is without merit. Central to the Plaintiff’s allegations is that Workday products make hiring decisions on behalf of our customers, which is not true. This is a preliminary, procedural ruling at an early stage of this case that relies on allegations, not evidence – Plaintiff has not supported his allegations with facts. The Court has not made any substantive findings against Workday. We’re confident that once Workday is permitted to defend itself with the facts, the Plaintiff’s claims will be dismissed.”
Bias in hiring and job displacement is a growing concern in the age of AI, especially for Black communities, as technology increasingly shapes the future of work.
At AFROTECH™ 2024, Tanneasha Gordon, U.S. data and digital trust principal at Deloitte & Touche, addressed how AI can perpetuate systemic bias.
Ahead of the conference, she told AFROTECH™ that understanding both the benefits and risks of AI is essential.
“As we move from simple AI systems to complex foundational models and usher in AGI – understanding how this technology can benefit our community as well harm us further is imperative,” Gordon said. “These systems and models are only effective with the availability, access, and use of high-quality data, including personal data. As a privacy, safety, and product compliance leader, this topic is of critical importance.”
Gordon highlighted the broader risks associated with biased algorithms in hiring and emphasized the need for responsible development of AI.
“I want to ensure that advancements in AI don’t perpetuate existing biases or create new forms of discrimination and infringe upon our rights as humans,” Gordon told AFROTECH™. “It’s important to have inclusive technical guardrails, controls, and policies that safeguard the privacy rights and keep users safe, especially those from underrepresented groups.”
