- Workday’s AI detection software criticized for discriminatory bias
- Contractors usually take responsibility, but software that replaces humans could be responsible
- The case must also consider AI much more broadly, including historical biases and shifting responsibilities.
During a June 2026 hearing, Judge Rita Lin hinted that she would likely reject Workday’s latest attempt to dismiss claims brought under California law in connection with a 2023 discrimination case.
Three years ago, Derek Mobley accused the company of turning him away from more than 100 jobs after he applied through the company’s hiring systems on the basis that he is black, over 40, and suffers from anxiety and depression.
But instead of suing individual employers, Mobley is bringing action against Workday itself, arguing that its AI-based hiring software is responsible for discriminatory actions.
Workday on track to face legal action over AI-based hiring software
Workday has argued that California’s employment discrimination laws should not apply when applicants live (or jobs are located) outside of California.
PakGazette notes that more than four in five U.S. employers and nearly all Fortune 500 companies now use AI-powered recruiting or candidate screening tools, and the ongoing case marks a major potential shift in their regulation.
Previously, employers were responsible for discriminatory hiring, but the lawsuit now explores whether software developers and artificial intelligence providers should bear any responsibility.
In a hearing before 2024, the judge questioned whether Workday could also qualify as an employer because it performs recruiting tasks that would normally be performed by human workers on human resources teams.
While this specific case relates to Workday, the court should also explore how training data may affect bias and who is responsible for the outcome; The results could have a much larger impact than a simple fine for Workday.
“Our technology focuses solely on job qualifications, not protected traits such as race, age or disability,” the company added in a statement.
Follow TechRadar on Google News and add us as a preferred source to receive news, reviews and opinions from our experts in your feeds.
