Twenty-six former employees claim Meta's internal AI tools penalized workers for taking protected medical and parental leave during the company's 2026 layoff cycle.
Here’s the thing about using AI to decide who gets fired: someone eventually has to answer for what the algorithm decided. For Meta, that reckoning arrived on July 14, 2026, when 26 former employees filed a federal lawsuit in Oakland, California, alleging the company’s AI-powered performance tools systematically pushed workers on medical or parental leave toward the exit.
The lawsuit, filed in the U.S. District Court for the Northern District of California, claims that a constellation of internal AI tools evaluated employee productivity and AI token usage to generate performance scores, and then used those scores to rank workers for layoffs. The problem, according to the plaintiffs, is that the system never accounted for approved absences.
What the algorithm allegedly missed
The plaintiffs allege the scoring not only failed to account for their protected leaves, but effectively penalized them for exercising their legal rights. In English: the system graded people on work they were legally permitted not to do, then handed those grades to managers making layoff calls.
The class action claims violations of federal and state laws protecting workers with disabilities and those on medical leave. Meta, for its part, has denied the allegations, saying human judgment drove workforce decisions rather than algorithms...
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