Job Applicant’s Algorithmic Bias Discrimination Lawsuit Survives Motion to Dismiss

In a recent development in Mobley vs. Workday, Inc., the United States District Court for the Northern District of California denied in part Workday, Inc.’s (“Workday”) Motion to Dismiss, allowing the Plaintiff to pursue novel claims that Workday – a third-party software vendor which provides artificial intelligence (“AI”) driven employment screening tools to assist employers in selecting job applicants – may be liable for the discriminatory effects of those tools under federal anti-discrimination laws.

Background

Plaintiff Derek Mobley (“Mobley”) filed a putative class action lawsuit in February 2023, alleging that his applications for 80-100 jobs with employers who use Workday’s screening tools were rejected because the tools allegedly allow the employers to make discriminatory…