Lawsuit2025 · US-federal🧑‍💼 HR & hiring

Mobley v. Workday — collective action over AI hiring screens (ongoing)

What happened

Derek Mobley, a Black man over 40 with anxiety and depression, says he applied to more than 100 jobs through employers using Workday's applicant-screening tools and was rejected every time, sometimes within minutes. He sued Workday in February 2023 (N.D. Cal., No. 3:23-cv-00770) alleging its AI screening disparately harms older, Black and disabled applicants. Workday argued it is only a software vendor, not an employer.

The rule

ADEA, Title VII, the ADA and (since 2026) California's FEHA, on an 'agent of the employer' theory: a vendor whose tool performs a delegated hiring function can be sued as if it were the employer. Disparate-impact claims need no proof of intent.

Outcome

Ongoing as of September 2026. In July 2024 the court refused to dismiss the case, accepting the agent theory. On 16 May 2025 it conditionally certified a nationwide ADEA collective of applicants aged 40+ rejected via Workday's platform since September 2020; the opt-in notice period closed on 7 March 2026. In June 2026 the court let California FEHA claims and a proxy-discrimination disability claim proceed. No trial date, judgment or settlement has been reported.

What this means for you

If you supply AI screening tools, you may be sued directly; if you use them, your vendor's bias becomes your bias. Ask vendors for adverse-impact testing results, keep a human review step, and be able to explain why any candidate was rejected. Watch this case: it is shaping how US courts treat AI hiring vendors.

Laws involved

Illinois HB 3773In forceUS-IL
NYC Local Law 144In forceUS-NY
Colorado ADMT ActUpcomingUS-CO
EU AI ActIn forceEU

Sources

Last reviewed Sep 25, 2026.