×
Thursday, March 12, 2026

New California Employment Lawsuit Tackles AI Discrimination - LawyersandSettlements.com

Employer used AI-generated consumer reports to screen applicants

San Francisco, CA On January 20, job applicants Erin Kistler and Sruti Bhaumik filed a proposed class action lawsuit against Eightfold AI Inc. in the Superior Court of Contra Costa County. Their lawsuit alleges that Eightfold’s AI-generated screening process blocked them from interviewing for jobs for which they were otherwise qualified.

The two women specifically accuse the data collection company of violating federal and California credit reporting laws. Nonetheless, the dispute falls within a developing area of California labor law where twenty-first century artificial intelligence tools run afoul of 1970s era civil rights statutes. The facts described in Kistler are very like those described in Mobley v. Workday, California’s 2025 groundbreaking AI employment discrimination lawsuit.

But the statutes at issue are different. Does this really make a difference or (with apologies to all feline guardians), does it just mean that there’s more than one way to skin a cat?


What went wrong

Both Kistler and Bhaumik hold science or tech degrees and have more than 10 years of experience. Kistler applied to roles at several companies that use Eightfold, including PayPal; Bhaumik applied to companies including Microsoft.

Neither was hired, and both believe that Eightfold's AI tools played a role. “I’ve applied to hundreds of jobs, but it feels like an unseen force is stopping me from being fairly considered,” said...



Read Full Story: https://news.google.com/rss/articles/CBMi1wFBVV95cUxNVTlaUk44Z25PUHJxUC11VHN3...