The following article was first published in the Employment Law Letter section of Shipman & Goodwin’s website. It is reposted here with permission.
If your organization uses AI or automated tools to screen, rank, or evaluate job applicants, recent developments from the Northern District of California and the Connecticut legislature deserve your attention.
Out of California, Mobley v. Workday, Inc., No. 23-CV-00770-RFL, is now in its third year of litigation and continues to produce significant rulings, grappling with the question of how existing federal anti-discrimination laws apply to AI driven hiring systems.
In Connecticut, the state legislature’s recent passage of SB 5, the Connecticut Artificial Intelligence Responsibility and Transparency Act, reflects a growing trend toward increased regulation of the use of automated employment hiring tools.
Together, these developments confirm that the legal risks associated with AI in hiring are real, growing, and no longer theoretical.
At its core, the case poses a straightforward question that should concern every employer using automated hiring tools: who is liable when an AI-driven screening system produces discriminatory outcomes?
Workday, Inc. provides a platform used by thousands of employers to process job applications, often serving as the gateway through which applicants must pass to even be considered for a role.
The plaintiffs allege that the platform’s AI-driven screening and ranking tools are producing...
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