Workday AI Hiring Lawsuit: The Case That Put Screening Software on Trial

What the Workday Lawsuit Alleges

The case, Mobley v. Workday, was filed in federal court in the Northern District of California and argues that Workday widely used artificial intelligence applicant-screening tools discriminate against job seekers based on age, race, and disability. The named plaintiff, Derek Mobley, alleges he applied to more than 100 positions at companies that use Workday and was rejected every time, sometimes within minutes or in the middle of the night, which he says signals automated screening.

What makes the case notable is its target. Workday is not the employer; it is the software vendor those employers use to sort applicants. The court allowed the claim to proceed on the theory that Workday can be held liable as an agent of the employers, a ruling that put AI hiring-tool vendors, not just employers, in the legal spotlight.

The Certified Age-Discrimination Collective

In May 2025, the court granted preliminary certification of a nationwide collective action under the Age Discrimination in Employment Act. As defined, it covers individuals aged 40 and older who, since September 24, 2020, applied for jobs through Workday platform and were denied employment recommendations. Because so many applications run through Workday, the potential group is enormous; in filings, Workday itself referenced more than a billion applications rejected during the relevant period.

A collective action under the age-discrimination law is opt-in, meaning eligible applicants must affirmatively join after receiving notice rather than being included automatically. The court approved a plan to notify potential members, and the case proceeds on a disparate-impact theory, which focuses on the discriminatory effect of a neutral practice rather than on proof of intent.

Where the Case Stands in 2026

This remains active litigation, not a settlement. In mid-2026, the court allowed several claims to move forward, including California state discrimination claims and a disability claim, while narrowing others, such as dismissing a race-based disparate-impact theory and a claim treating Workday as an employer in its own hiring. The age-based collective continues. There is no verdict and no settlement fund.

Workday denies wrongdoing and maintains that its tools do not make hiring decisions. Because the case is unresolved, nothing is payable today. Its importance lies in setting precedent for how anti-discrimination law applies to automated hiring, which is why employers, vendors, and applicants are watching it closely.

Who This Affects and What to Do

This is not a consumer matter; it concerns job applicants. The people most directly affected are applicants 40 and older who were screened out through Workday since September 2020 and may fit the certified collective. If you receive an official notice about the collective, it will explain how to opt in and the deadline to do so.

If you believe an automated system screened you out unlawfully, keep records of your applications, rejections, and their timing. Watch for court-approved notices rather than unsolicited messages, and treat any demand for payment or sensitive information as a red flag, since legitimate collective-action notices do not work that way.

How to Get Legal Help

If you believe you qualify based on the eligibility criteria described above, the next step is a free consultation with an experienced attorney. Most plaintiff-side attorneys handling these cases work on contingency, meaning you pay nothing unless your case results in a recovery. Bring any relevant documentation, including receipts, correspondence, medical records, or other evidence of the harm you experienced.

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