A federal district court judge has ruled a lawsuit alleging AI screening software made by Workday software is discriminatory can proceed.
The ruling partially denied the company’s motion to dismiss (Mobley v. Workday, Inc.).
The plaintiff, who has applied to over 100 positions at companies using Workday’s screening tools since 2017, claimed he was rejected from every position despite being qualified.
He alleged the software discriminated against him based on race, age, and disability,
He says it violates Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, and the Americans with Disabilities Act.
The complaint says the plaintiff provided his educational background, including his graduation from a historically Black college.
It claims the plaintiff often completed assessments that likely revealed his depression and anxiety, leading to his exclusion.
He inferred the rejections were automated, noting the timing of the notifications, often received quickly and in the middle of the night.
Workday sought to dismiss the lawsuit, arguing it, as a software vendor, is not liable for employment discrimination.
The court denied this motion, stating Workday acts as an agent of employers under relevant laws.
The judge said: “Workday’s software is not simply implementing in a rote way the criteria that employers set forth, but is instead participating in the decision-making process by recommending some candidates to move forward and rejecting others.
“Given Workday’s allegedly crucial role in deciding which applicants can get their ‘foot in the door’ for an interview, Workday’s tools are engaged in conduct that is at the heart of equal access to employment opportunities.”
However, the judge did not agree that Workday is an employment agency, noting that the software does not recruit or procure employees for companies.
“Workday’s software is not simply implementing in a rote way the criteria that employers set forth, but is instead participating in the decision-making process by recommending some candidates to move forward and rejecting others”
Additionally, the court found that the plaintiff did not allege specific facts showing intentional discrimination by Workday, even though he demonstrated the software had a disparate impact.
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Workday said: “We’re pleased that the majority of claims in this case were dismissed, and we’re confident that the remaining allegations will be easily refuted as we move to the next phase where we’ll have an opportunity to directly challenge their accuracy.”
This case highlights the evolving area of employment law as more HR departments utilize AI-assisted software for candidate screening.
Federal and state agencies have started passing laws and providing guidance on using such tools.
New York City requires employers to notify candidates about AI decision-making software.
The US Equal Employment Opportunity Commission launched an initiative to ensure AI software complies with EEO laws, releasing related technical assistance in May 2023.
The EEOC also filed an amicus brief supporting the plaintiff in this case.
