N Quiring Minds highlights the class-action lawsuit Mobley v. Workday, in which Derek Mobley accuses HR software giant Workday of using AI-driven screening and assessment tools that discriminate against applicants based on race, age and disability. The complaint argues that Workday’s algorithms function like a modern exam that disproportionately excludes members of protected classes in violation of Title VII of the Civil Rights Act and other anti‑discrimination laws. In an important early ruling, a federal court allowed the case to proceed, rejecting Workday’s contention that it is merely a vendor and not an “employment agency.”

The decision signals that AI vendors may bear legal responsibility when their technology perpetuates discriminatory outcomes. If the plaintiffs succeed, the case could set a precedent for accountability in the use of AI hiring tools and increase scrutiny of algorithmic bias in recruitment. It underscores the growing legal risks for companies deploying AI in human‑resources decisions and the need for robust oversight to ensure fairness and compliance with anti‑discrimination statutes.