Workday suit signals potential future liability for workplace software developers

In February 2023, Derek Mobley filed a proposed class action lawsuit against HR software developer Workday, Inc., in the U.S. District Court for the Northern District of California, alleging discriminated in hiring based on race, disability, and age under Title VII of the Civil Rights Act of 1964, Section 1981, and other workplace antidiscrimination laws. What makes the lawsuit unique is that he never applied for a job with Workday. Instead, the lawsuit alleges he applied to companies that used Workday’s software for hiring and that the software unlawfully screened him out based on protected characteristics through AI and machine learning.

After surviving a motion to dismiss in July 2024, the case is headed to the discovery phase. Depending on the outcome, it may expose software developers to liability for employment discrimination resulting from use of their tools and remake the landscape of hiring software relied upon by employers.

Agent theory moves forward