Federal Lawsuit Against Workday Claims AI Hiring Tools Discriminate Against Older, Minority, and Disabled Applicants

NewsData.io · United States · Aug 4, 2026

A federal lawsuit, Mobley v. Workday, alleges that Workday's AI-driven hiring tools systematically screen out older, minority, and disabled applicants through algorithmic bias—even if unintentional. The case is heading toward a class certification hearing in March and is being watched closely as major employers, including Johns Hopkins, adopt Workday for their hiring processes. Legal and HR experts warn that employers using AI screening tools must actively audit for disparate impact, as liability may extend to the employers themselves, not just the platform vendor. The case adds to a broader wave of AI hiring litigation, with Eightfold AI also recently sued over its applicant-ranking practices.