Human resources tech company Workday is at the center of a growing legal battle over claims that its AI-based hiring tools discriminate against older job applicants. A California district judge has given the green light for the lawsuit to proceed as a collective action, a move that could have major implications for how companies use artificial intelligence in recruitment.
The case was originally filed by Derek Mobley, who claims he was repeatedly rejected for jobs through Workday’s platform due to his age, race, and disabilities. Mobley, who is over 40, says he applied to over 100 jobs in seven years and was denied every time—often within minutes or hours of applying. Four additional plaintiffs, all over the age of 40, have since joined with similar age discrimination claims.
The plaintiffs argue that Workday’s algorithms unfairly screen out older candidates, automatically rejecting their applications without human review. They point to cases where rejection emails arrived in the middle of the night, suggesting no recruiter ever saw their resumes. One plaintiff said she was falsely told she didn’t meet basic job requirements.
Workday denies the allegations, arguing that it doesn’t directly make hiring decisions and that the lawsuit is based on accusations rather than proof. The company called the judge’s decision a procedural step and expressed confidence that the case would eventually be dismissed.
Used by over 11,000 companies globally, Workday provides a platform to manage hiring processes and also markets a tool called HiredScore AI, which it claims helps identify top candidates efficiently using “responsible AI.” However, critics warn that AI tools can inherit biases from existing data, often favoring certain demographics like younger, male, or white candidates.
The American Civil Liberties Union (ACLU) and other advocacy groups have raised concerns about AI in hiring, saying such tools risk amplifying existing workplace discrimination. In one high-profile case in 2018, Amazon scrapped a similar AI tool when it was found to favor male applicants.
Mobley’s legal team claims that Workday’s algorithm may adjust its recommendations based on the preferences of the companies using its software—even if those preferences are discriminatory. The lawsuit seeks monetary damages and a court order to force Workday to change its practices.
As the case moves forward, the plaintiffs will be allowed to notify others who may have faced similar discrimination and invite them to join the suit. Meanwhile, Workday still has the option to request that the claims be handled on an individual basis rather than as a group.
This lawsuit could become a landmark case in defining how algorithmic bias in hiring is addressed under the law—particularly for people over 40.
