Age Discrimination Suit Against Workday Inc. Moves Forward

Previously, I wrote about algorithmic discrimination and the risks of utilizing AI software to make HR decisions. Now Workday Inc., an HR software provider, faces a collective action suit alleging its AI software unlawfully discriminates against older candidates. A recent Holland & Knight memo discusses new developments in the case:

“On May 16, 2025, Judge Rita Lin of the U.S. District Court for the Northern District of California granted preliminary certification under ADEA, allowing the lawsuit to move forward as a nationwide collective action… The case involves Mobley and four other plaintiffs representing all job applicants ages 40 and older who were denied employment recommendations through Workday’s platform since Sept. 24, 2020. The court determined that the main issue – whether Workday’s AI system disproportionately affects applicants over 40 – can be addressed collectively, despite the challenges in identifying all potential members of the collective action.”

Mobley’s case was previously dismissed without prejudice, allowing the Plaintiffs to refile an amended complaint. The current round of pleadings was sufficient to move beyond Workday’s motion to dismiss and gained preliminary certification. Cases like this are novel, and the resulting decisions will lay the groundwork for case law for AI litigation. Even in the current deregulatory environment, AI use often intersects with existing laws in ways that result in litigation. Following developing cases and adapting to new case law is vital to building a robust AI compliance program.