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Friday, November 21, 2025

AI Hiring Targeted By Class Action And Proposed Legislation - Employee Rights/ Labour Relations - United States - Mondaq

As in almost every area, Artificial Intelligence (AI) is rapidly changing the way that employees are recruited and hired. AI resume screening and candidate matching tools promise to make the hiring process more effective, efficient, and economical

As in almost every area, Artificial Intelligence (AI) is rapidly changing the way that employees are recruited and hired. AI resume screening and candidate matching tools promise to make the hiring process more effective, efficient, and economical. A survey showed that 70 percent of employers plan to use AI in the hiring process by the end of 2025. However, claims of discrimination and unfairness threaten to derail, or at least slow down, AI's momentum.

In May 2025, in Mobley v. Workday, Inc, a federal court for the Northern District of California conditionally certified a nationwide class of older workers based upon the allegation that Workday's algorithmic screening tools disparately impacted older workers. In other words, the tools allegedly screened out older workers at a higher rate before a human being reviewed the candidates. The court noted that over one billion applicants may have been rejected using Workday. Very recently, the court ordered Workday to turn over its list of employer clients who used Workday's HiredScore tool to score, sort, rank, or screen candidates. The list is to be used to determine whether a person can be included in the collective lawsuit. While only Workday is thus far a defendant in Mobley, there...



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