Source: Frantz Ward LLP on JD Supra

Frantz Ward LLP reports that in Mobley v. Workday, Inc., a federal judge granted conditional certification of a nationwide collective action alleging age discrimination by Workday’s AI hiring software. The lawsuit claims that older applicants were unfairly rejected due to algorithmic bias. The case potentially involves hundreds of millions of plaintiffs and holds that employers may be liable if AI tools function as their agents.

The litigation underscores the importance for employers to audit AI recruitment tools for bias, train HR professionals, implement policies, and review vendor contracts to mitigate liability. The discovery phase will likely provide insights into the design and deployment of automated screening systems. This case may set important precedents regarding employer liability in AI-driven hiring.