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ARTICLE · 01 AUGUST 2024

Mobley v. Workday: A Potential Shift In Employment Discrimination Liability

Porzio, Bromberg & Newman
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As recruiting with Artificial Intelligence (AI) continues to increase in popularity, so does the litigation surrounding it. Specifically, concerns continue to grow regarding...

United StatesEmployment and HR
Rachel E. Fairley
Rachel E. Fairley
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As recruiting with Artificial Intelligence (AI) continues to increase in popularity, so does the litigation surrounding it. Specifically, concerns continue to grow regarding the conscious and unconscious biases that are alleged to creep into the recruiting process. In a case of first impression (Mobley v. Workday, Inc.), class-action Plaintiffs allege that Workday's AI screening software tool is biased and that Workday is directly liable for alleged unlawful employment discrimination caused by an employer's use of Workday's AI-powered hiring tools. On July 12, 2024, the court issued a mixed ruling in the closely watched class action case. By partially denying Workday's motion to dismiss, Judge Rita Lin of the Northern District of California determined earlier this month that the Plaintiff's claims would be heard. While the court dismissed the claims that Workday acted as an “employment agency,” it allowed claims that Workday acted as an “agent” of employers, allowing

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