Landmark AI Hiring Bias Case Against Workday to Proceed as Class Action

Jesika Silva Blanco reports in Inside Tech Law that on May 16, a federal judge allowed a nationwide collective action to proceed against Workday Inc., marking the first class action lawsuit targeting the use of AI hiring and screening tools.

The case, Mobley v. Workday, Inc., Northern District of California, could involve “hundreds of millions” of applicants and raises critical questions about employer liability when AI tools are used to assess job candidates.

Workday, a prominent HR and finance AI platform used by over 11,000 companies globally, offers AI-driven tools that assist in evaluating job applicants.

The decision sets a legal precedent for how courts may approach AI-based discrimination claims. It is likely to influence both technology vendors and employers that utilize automated hiring systems.

Derek Mobley, a Black man over 40, alleges that he has been repeatedly rejected from over 100 job applications since 2017 through Workday’s platform.

Mobley filed a lawsuit claiming discrimination based on race, age, and disability. Although Workday argued it was not the employer and should not be liable, the court found it could be deemed an “agent” of the hiring companies.

Mobley then moved to certify a class of individuals aged 40 and over who were similarly rejected, and four other plaintiffs joined him with similar claims.

On May 16, 2025, Judge Rita F. Lin granted preliminary certification of the class, allowing the case to proceed to trial. She found that the alleged use of Workday’s AI to sort and reject applicants based on age constituted a potentially uniform policy with disparate impact.

Attorneys should note that this case signals a growing litigation risk associated with the use of AI hiring tools. Vendors and employers must ensure that their AI systems undergo bias audits and that legal compliance protocols are in place.

The ruling also expands the potential scope of collective actions, particularly as courts may now consider issuing class notices via platforms such as social media, which will increase participation and exposure.