Workday AI Hiring Tool Faces Expanded Class Action for Race, Age, and Disability Discrimination

The Mobley v. Workday class action lawsuit, originally filed in 2022, has expanded significantly in 2025 with additional plaintiffs and broader allegations of systematic discrimination. The lawsuit now includes hundreds of job seekers who claim Workday's AI-powered hiring algorithms unlawfully screened them out based on race, age, and disability status. The platform, used by major corporations including Tesla, Goldman Sachs, and Delta Air Lines, processes millions of job applications annually through automated screening tools. The expanded complaint alleges that Workday's algorithms were trained on historical hiring data that embedded decades of workplace discrimination, causing the AI system to perpetuate and amplify these biases. Plaintiffs claim the system systematically ranked candidates from protected classes lower than similarly qualified white, younger, and non-disabled applicants. Internal documents reportedly show that Workday was aware of potential bias issues but failed to implement adequate safeguards or conduct proper algorithmic auditing. The case has grown to include over 100,000 potential class members who applied for jobs through Workday's platform between 2020 and 2024. Plaintiffs are seeking damages estimated at $50 million, along with injunctive relief requiring Workday to redesign its algorithms and implement bias monitoring systems. The lawsuit alleges violations of Title VII of the Civil Rights Act, the Age Discrimination in Employment Act, and the Americans with Disabilities Act. The legal implications extend beyond Workday to the broader AI industry. The case represents one of the first major class action lawsuits targeting AI bias in hiring at scale, potentially establishing precedent for how courts will handle algorithmic discrimination claims. Employment law experts note that the case could clarify whether companies can be held liable for the discriminatory outcomes of third-party AI tools they deploy. Workday has denied the allegations, arguing that its tools are designed to reduce bias in hiring and that any disparate outcomes result from legitimate job-related factors. The company claims it conducts regular bias testing and provides clients with guidance on fair hiring practices. However, plaintiffs' attorneys argue that these measures are inadequate given the scale and systematic nature of the alleged discrimination. The case is being closely watched by both the tech industry and civil rights advocates as it could establish important legal standards for AI accountability in employment decisions. The outcome may influence how companies approach AI deployment in hiring and what safeguards are legally required to prevent discriminatory outcomes.