Court Orders Workday to Reveal Employers That Used AI Tool Allegedly Biased Against Older Job Seekers

A federal court has ordered Workday, a major HR software company, to turn over a list of all employers that used its HiredScore AI tool to screen job applicants. The order comes as part of a lawsuit claiming that Workday’s AI system discriminated against older job seekers by automatically rejecting qualified applicants over 40 years old.

The plaintiff in the case alleges that the AI unfairly filtered out his application before a human ever saw it. Workday argued that it shouldn’t be held responsible because it’s just a software provider, not an employer or employment agency. But the judge disagreed, finding that Workday’s tools could have directly influenced hiring decisions.

The court also allowed the case to move forward as a collective action, meaning others who were similarly affected can join the lawsuit. Specifically, people aged 40 or older who applied for jobs through systems using Workday’s AI since September 2020 may be eligible.

Workday must now provide the court with a list of all companies that used the HiredScore features by August 20. This will help identify who might be affected and allow notice to be sent out to potential members of the case.

The decision highlights growing legal concerns about using artificial intelligence in hiring. Employers using automated screening tools may be held responsible if those tools lead to discrimination, even unintentionally. As AI becomes more common in hiring, courts are beginning to take a closer look at how these tools are used and whether they treat applicants fairly.