A closely watched federal lawsuit alleges that artificial intelligence used during the hiring process can unfairly screen out qualified applicants with disabilities.

As reported by Disability Scoop⁠, the proposed class-action lawsuit accuses human resources platform Workday of using AI-powered screening tools that disproportionately disadvantage disabled applicants, people older than 40 and members of other protected groups.

Employment Gaps May Become Disability “Proxies”

The plaintiffs allege Workday’s software can treat information such as gaps in employment history as an indicator of illness or disability. A federal judge has allowed claims involving disability discrimination and disparate impact to continue, while earlier allegations of intentional discrimination were dismissed.

Workday denies the allegations. The company says its recruiting technology evaluates job qualifications—not protected characteristics—and that employers retain control over hiring decisions. Reuters reported that a federal judge allowed most of the amended claims to proceed⁠.

Why the Case Matters

The lawsuit could help establish how existing civil rights protections apply when employers rely on automated systems to review résumés, rank candidates or recommend which applicants advance.

The U.S. Department of Justice warns that hiring technologies may violate the Americans with Disabilities Act when they unfairly screen out qualified applicants. Employers can also remain responsible when discriminatory technology is supplied by a third-party vendor, according to federal guidance on AI and disability discrimination⁠.

For job seekers with disabilities, the case highlights growing concerns about transparency, reasonable accommodations and whether an automated rejection occurred before a human reviewed the application.

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Published by Bryan Tomlinson A Highly Skilled Person with Disabilities|