When AI discriminates: What the Workday lawsuit means for workers and the law

A growing class-action lawsuit against Workday is raising new questions about how artificial intelligence (AI) is being used to screen job applicants. The case asks whether those tools may be illegally biased against older workers, non-white applicants, and those with disabilities.

The lead plaintiff, Joseph Buck, is a 61-year-old non-white man with a disability who alleges he was rejected for more than 80 positions that used Workday’s applicant screening software. He and others argue that Workday’s AI-powered tools discriminate against applicants based on race, age, and disability. The lawsuit claims that the system is programmed or trained in ways that exclude certain groups, and that companies using Workday's tools are, knowingly or not, participating in discriminatory practices.

This lawsuit comes at a moment when the use of algorithmic decision-making in hiring is expanding rapidly. Yet the law remains largely unclear or outdated. As more companies rely on software platforms to evaluate resumes, rank candidates, or even conduct interviews, serious concerns are emerging about who gets screened out and whether that is happening legally or fairly.

Discrimination in hiring is real — and often invisible

For workers over 40, the fear of age discrimination is not new. Similarly, job seekers who are non-white, disabled, or part of another protected class often face barriers that are difficult to identify or prove. Despite federal protections under the Age Discrimination in Employment Act (ADEA), the Americans with Disabilities Act (ADA), and Title VII of the Civil Rights Act, discrimination in hiring remains pervasive, especially when decisions are being made by algorithms.

It is often even harder to challenge when it is embedded in automated systems. Applicants may never know why they didn’t get a callback or whether a screening tool filtered them out based on factors correlated with race, disability, or age — like graduation year, employment gaps, or resume formatting.

In Washington State, age, race, and disability are all protected classes under the Washington Law Against Discrimination (WLAD). Employers are prohibited from making employment decisions based on any of these characteristics. However, enforcement in the AI era is complicated. Unlike traditional hiring processes, AI tools are often treated as black boxes. Companies may not fully understand how the algorithms make decisions, and job applicants certainly don’t.

Photo by Ron Lach

Washington’s legislative lag on AI and hiring bias

In Washington State, the legislature has yet to directly regulate the use of artificial intelligence in hiring decisions. While the Washington Law Against Discrimination (WLAD) offers strong protections against bias based on age, race, gender, and disability, it does not currently address how these protections apply when decisions are made by software rather than people.

In recent years, Washington lawmakers have introduced bills focused on consumer data privacy and automated decision systems. These efforts have largely targeted issues like surveillance and personal data collection, not employment discrimination. To date, no Washington law requires employers to audit or disclose how AI tools affect job applicants. That leaves a significant gray area where algorithmic discrimination can occur with little visibility or oversight.

As lawsuits like the one against Workday bring national attention to these risks, Washington, home to some of the world's largest technology companies, may soon face increased pressure to lead on regulating AI in employment. Until then, workers and businesses alike are left navigating a rapidly changing technological landscape without clear legal guardrails.

What this means for workers and employers

If you're a job seeker who suspects discrimination, whether based on age, race, disability, or another protected class, you have rights. At Stockwell Law Firm, we handle age, race, and disability discrimination cases and advocate for workers who have been unfairly excluded, mistreated, or wrongfully terminated.

If you've experienced discrimination or have questions about your rights, we’re here to help.