Suit Involving Artificial Intelligence-Powered Hiring Tools Heads to Discovery

A closely watched discrimination lawsuit over software provider Workday’s artificial intelligence-powered hiring tools is headed into discovery after a California federal court ruled the company may be subject to federal antidiscrimination laws if its products make decisions on candidates. […]

Alex W. Karasik, a management-side attorney who is a partner at Duane Morris LLP and a member of the firm’s workplace class action group, said companies using or selling workplace-related AI tools need to track the Workday proceedings closely.

“This is definitely a case to watch, as it’s a landmark case involving the use of artificial intelligence and the hiring process,” he said. “Both employers and technology vendors, particularly those involved with artificial intelligence or algorithmic decision-making tools, absolutely need to pay attention to this case.”

He said [the] decision sets out critical guidelines for courts’ evaluations of who may be on the hook when a vendor of AI-based hiring tools faces allegations that its product churns out biased results. […]

Read the full article on the Law360 website (subscription may be required).

Discrimination Suits Rise with AI Recruiting Software

In Mobley v. Workday, Inc., Case No. 23-CV-770 (N.D. Cal. Jan 19, 2024) (ECF No. 45), Judge Rita F. Lin of the U.S. District Court for the Northern District of California dismissed a lawsuit against Workday involving allegations that algorithm-based applicant screening tools discriminated applicants on the basis of race, age, and disability. With businesses more frequently relying on artificial intelligence to perform recruiting and hiring functions, this ruling is helpful for companies facing algorithm-based discrimination lawsuits in terms of potential strategies to attack such claims at the pleading stage.

Read more on the Duane Morris Class Action Defense Blog.

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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