USD 0Title VII / ADEA / ADAUS
Mobley v. Workday: AI Screening Tool Class Action Proceeds
Summary
In May 2025, a federal judge in the Northern District of California granted preliminary certification of a collective action in Mobley v. Workday, allowing the plaintiff to notify similarly situated individuals of the lawsuit. The case alleges that Workday's AI-based applicant recommendation system discriminates against job applicants based on age, race, and disability.
Details
- Violation: Alleged disparate impact discrimination via AI screening algorithms
- Plaintiff: Derek Mobley, joined by 4 other plaintiffs over age 40
- Defendant: Workday, Inc. (HR software provider)
- Framework: Title VII, ADEA, ADA
- Status: Ongoing — preliminary collective action certification granted May 16, 2025
Key Developments
- February 2023: Original complaint filed
- January 2024: Court granted Workday's motion to dismiss, but allowed amendment
- February 2024: First Amended Complaint filed
- April 2024: EEOC filed amicus brief supporting plaintiff's theory that AI vendors can be liable as "employment agencies" or "agents"
- July 2024: Court denied Workday's motion to dismiss, ruling Workday can be held liable as an "agent" of employers
- May 2025: Preliminary collective action certification granted for ADEA claims
Why This Case Matters
This is the first major class action where an AI/HR software vendor (not the employer) is being held potentially liable for discrimination. The court ruled that "drawing an artificial distinction between software decisionmakers and human decisionmakers would potentially gut anti-discrimination laws in the modern era."
Key Takeaways
- AI vendors can be held directly liable under anti-discrimination laws as "agents" of employers
- Employers delegating hiring decisions to AI tools remain responsible for outcomes
- Class action exposure for AI screening tools is now a reality
- The EEOC is actively supporting theories of AI vendor liability