The AI hiring lawsuit, Mobley v. Workday, Inc., just hit a critical phase that demands attention from every TA and HR leader.
The case, which centers on allegations that Workday’s AI screening tools disproportionately disadvantaged older and Black applicants, is moving forward as a nationwide collective action for age discrimination. This means potentially hundreds of millions of rejected applicants over the age of 40 are now being identified and notified.
A key recent ruling forced Workday to expand the scope of the collective to include users of its acquired HiredScore AI features, consolidating the liability. This ongoing litigation reinforces the massive precedent set earlier by the court’s decision: AI vendors can be held directly liable as an “agent” of the employer.
This is a crucial distinction. We cannot simply delegate compliance risk to our tech vendors and walk away. This case underscores the urgent need for robust, ongoing auditing of all algorithmic screening tools in our talent stacks to ensure they are legal and fair.
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Mobley v. Workday, Inc., Case No. 3:23-cv-00770-RFL (N.D. Cal. filed Feb. 21, 2023). (Reference to the initial case filing in the U.S. District Court for the Northern District of California).
Court Order Granting Preliminary Collective Action Certification. Mobley v. Workday, Inc., No. 3:23-cv-00770-RFL, Document 128 (N.D. Cal. May 16, 2025). (Supports the certification of the nationwide ADEA collective action).
Court Order Denying Motion to Dismiss and Allowing “Agent” Theory. Mobley v. Workday, Inc., No. 3:23-cv-00770-RFL, 2024 U.S. Dist. LEXIS 126336 (N.D. Cal. July 12, 2024). (Supports the core finding that Workday could be liable as an “agent” of the employers).
Court Order on HiredScore Inclusion and Customer List Disclosure. (Reference to the July 29, 2025, and subsequent August/September 2025 rulings). (Supports the expansion of the collective to include HiredScore users and the ordering of customer list disclosure to an administrator).
Fisher Phillips. “Discrimination Lawsuit Over Workday’s AI Hiring Tools Can Proceed as Class Action: 6 Things Employers Should Do After Latest Court Decision.” May 27, 2025.
Seyfarth Shaw. “Mobley v. Workday: Court Holds AI Service Providers Could Be Directly Liable for Employment Discrimination Under “Agent” Theory.” July 19, 2024.
SocialTalent. “The Workday Lawsuit Just Changed Everything: Why Your Hiring Process Needs an Urgent Audit.” October 14, 2025.
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