Workday Seeks Dismissal in 3-Year AI Hiring Bias Suit as Core Federal Claims Survive
Updated
Updated · CBIA · May 20
Workday Seeks Dismissal in 3-Year AI Hiring Bias Suit as Core Federal Claims Survive
5 articles · Updated · CBIA · May 20
April 10, 2026, Workday filed a new motion to dismiss the latest amended complaint in Mobley v. Workday, a lawsuit alleging its AI hiring tools produced discriminatory screening outcomes.
The motion argues plaintiffs exceeded limited leave to amend, some claims are time-barred, and California FEHA allegations remain insufficient after a March 27 third amended complaint expanded race and disability claims.
Federal disparate-impact claims under Title VII, the ADEA and disability law have survived prior challenges, even after a 2024 ruling dismissed intentional-discrimination claims but let outcome-based bias claims proceed.
Plaintiffs say Workday's systems rely on historical hiring data and proxy factors such as employment gaps, experience and education, while audit data allegedly shows statistically significant disparities for some groups.
The case is emerging as an early test of whether existing anti-discrimination law can reach AI hiring platforms, as Connecticut's SB 5 adds disclosure rules and says automated tools are no defense.
As lawsuits target hiring algorithms, will companies revert to more biased human recruiters?
Employers are liable for AI bias, but vendors hold the code. Who truly bears the risk?
If AI scores job applicants using public data, is it an illegal credit reporting agency?
Age Discrimination, Algorithmic Bias, and the Legal Risks of AI in Hiring: Lessons from Mobley v. Workday
Overview
The Mobley v. Workday, Inc. lawsuit is moving forward in the legal system as of May 2026, having passed the initial pleading stage and entered discovery. This case centers on claims that Workday’s AI-driven hiring tools discriminate against older job applicants, raising concerns under the Age Discrimination in Employment Act. The court found enough evidence for the case to continue, allowing both sides to collect more information. This lawsuit follows a trend of legal actions, such as the iTutorGroup case, where AI hiring tools were also accused of age discrimination, highlighting growing scrutiny of AI in employment decisions.