A federal judge in California is considering whether the state’s Fair Employment and Housing Act (FEHA) can be applied to a proposed class action lawsuit alleging that Workday’s AI-powered hiring technology discriminates against certain job applicants. Lead plaintiff Derek Mobley and other applicants over age 40 claim they collectively submitted hundreds of thousands of job applications through systems using Workday’s screening platform but were repeatedly denied interviews. The plaintiffs allege that the technology disproportionately disadvantages African American, Asian American, female, older, and disabled applicants.
During an August 31 hearing, attorneys for Workday argued that California law should not govern hiring decisions involving employers and applicants located outside the state. Workday contends that applying FEHA based solely on the company’s presence in California would improperly extend California employment laws to hiring decisions that take place elsewhere. Plaintiffs countered that FEHA is applicable because the company’s applicant-screening tools, including the algorithms at the center of the lawsuit, were developed and operated from Workday’s California headquarters.
U.S. District Judge Rita Lin previously issued a tentative opinion on May 27 indicating that Workday could potentially be held directly responsible under FEHA for its own conduct in developing and providing hiring technology. However, she has not yet issued a final ruling on the issue. The company maintains that its AI recruiting tools evaluate job-related qualifications rather than protected characteristics and notes that the systems are tested to prevent adverse impacts on protected groups. The case comes as courts continue to grapple with the role of artificial intelligence in employment decisions. Notably, Judge Lin conditionally certified a class last month consisting of applicants over age 40 who were denied jobs after applying through Workday’s platform between September 24, 2020, and the present.
This blog is intended to provide information to the general public and to practitioners about developments that may impact Oregon class actions.
