AI May Have Illegally Denied People Jobs: Court to Hear Case Against HR Platform
In the USA, the company Workday is to be held accountable in a lawsuit claiming that its popular AI-based human resource management software filtered job candidates for other companies in a way that violated California law and the federal prohibition on discrimination against workers with disabilities. This decision was made by a federal judge, reports wsbradio.com.
U.S. District Judge Rita Lin in San Francisco rejected the argument of the California company Workday that the state's anti-discrimination laws do not apply when it evaluates candidates located outside California who are applying for jobs in other states or countries.
The proposed class action lawsuit, filed in 2023, is the first of its kind to broadly challenge the algorithmic decision-making underlying AI-based candidate selection software. Such systems are now widely used by large employers, and the outcome of this case could shape approaches to similar lawsuits in the future.
Judge Lin first denied Workday's motion to dismiss the case back in 2024. This week, she also largely rejected the company's request to exclude recent amendments to the lawsuit. The judge noted that since Workday engaged in illegal activities from its headquarters in California, the company may be held liable for discrimination under state law.
The judge also refused to dismiss the claim that Workday's software may filter candidates based on so-called "indirect indicators" of disability or illness, such as gaps in employment history, which plaintiffs argue violates the U.S. federal Americans with Disabilities Act.
At the same time, the judge rejected the claim that Workday's software discriminated against candidates of Asian descent, noting that the plaintiffs failed to follow proper procedure to include this allegation in the lawsuit. Separately, plaintiffs also claim that Workday discriminated against Black candidates, women, and people over 40 years old.
In a statement conveyed through the company's representative, Workday called the lawsuit's allegations false and stated that its AI-based recruiting tools "do not make hiring decisions either in California or anywhere else."
"Our technology evaluates exclusively professional qualifications, not legally protected characteristics such as race, age, or disability. We rigorously test our products within the Responsible AI program to ensure our tools do not harm protected groups," the company said.
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