While AI use in recruiting and hiring is growing at warped speed, one expert warns about the balance organizations need to strike in pursuing efficiency and creating significant legal risks.
Andrew J. Adams, a partner and chief administrative officer at DarrowEverett LLP, a New York City-based law firm, says AI hiring technology is no longer simply a procurement decision—it is a new legal risk that requires prompt action and strategic forethought.
Few realities underscore that reality more than the lawsuit facing HR tech Workday. This spring, conditional certification was granted in that case (Mobley v. Workday) that opens the door to age discrimination claims on behalf of potentially millions of job applicants who were screened using Workday’s AI recommendation system.
The plaintiff, Derek Mobley, claims that he applied to more than 100 job openings posted by companies using Workday’s AI-powered hiring tools and was rejected each time he submitted an application. Adams says that based on Workday’s discovery, its AI applicant tracking tool screened out one billion applications.
According to the case documents so far, the allegation is that the system’s algorithmic process is biased against applicants older than 40, in violation of the Age Discrimination in Employment Act.
“The court found a common issue among the potential class members: whether Workday’s AI system creates a disparate impact on older applicants,” Adams says.
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