Judge Orders Workday to Disclose Full List of Employers Using AI Hiring Tools Amid Bias Lawsuit

Workday Ordered to Disclose Employers Using AI Hiring Technology

A recent court ruling requires Workday Inc. to provide a comprehensive list of employers that have activated HiredScore's AI features in their hiring processes. This decision comes amid a collective action lawsuit claiming that the AI-driven applicant recommendation software has negatively affected candidates aged 40 and over.

Background of the Case

The lawsuit began when a plaintiff challenged Workday's use of AI in applicant screening, specifically targeting the HiredScore technology. The U.S. District Court for the Northern District of California ruled that the collective action must include all individuals whose applications were scored, sorted, ranked, or screened using HiredScore's AI features.

Workday's Position and the Court's Ruling

Workday argued the collective should be limited to applicants evaluated with its Candidate Skills Match tool, claiming the HiredScore AI operates on a separate platform with different algorithms. However, the court rejected this narrow view, emphasizing that the collective must encompass all users impacted by HiredScore’s AI features.

Despite concerns about identifying members of the collective, Judge Rita Lin noted these challenges are manageable. The company has until August 20 to submit the list of customers who enabled the HiredScore technology.

Implications for HR Professionals

AI's role in hiring continues to raise legal and ethical questions. Jurisdictions like New York City have already implemented laws requiring auditing of automated hiring tools and mandatory candidate notifications. California and Colorado are expected to introduce similar regulations in 2026.

For HR teams, this means increased scrutiny of AI-driven hiring tools. Transparency about these technologies and their impact on candidates is essential. Staying informed on compliance requirements will help avoid legal risks and maintain fair hiring practices.

What HR Leaders Should Consider

• Audit AI hiring tools regularly to ensure fairness and compliance.
• Inform candidates when AI systems are involved in hiring decisions.
• Stay updated on evolving AI hiring regulations in your jurisdiction.
• Collaborate with legal and tech teams to manage AI tool deployment responsibly.

To deepen your understanding of AI applications in HR and comply with emerging regulations, explore comprehensive training resources such as those offered by Complete AI Training.

The Workday case signals that companies integrating AI into recruitment must be prepared for transparency and accountability. HR professionals should prioritize ethical AI use to safeguard candidate experience and organizational reputation.