Workday Inc., a software company that produces programs for human resources and labor management purposes, is facing a class action lawsuit due to alleged bias in its artificial intelligence-powered software. The lawsuit claims that the company’s software illegally discriminates against people based on protected factors, such as race and disability status. Workday, meanwhile, has argued they should not be subjected to this lawsuit because they are not an employment firm, despite a ruling by the EEOC to the contrary.
What is Workday?
Workday is a company that provides software to help companies, among other things, make critical decisions about their finances and employment. This includes sorting out prospective employees by filtering their resumes using an AI-powered program. The company is estimated to bring in more than $7 billion every year in revenue based on the services it provides to employers.
What is Workday Accused Of?
In this lawsuit, Workday has been accused of using biased criteria, resulting in candidates being illegally screened out of jobs based on their race, sex, nationality, or disability status. Workday claimed they should not be held responsible for employment decisions made by its customers, as they are able to configure their software to their own specifications, but the EEOC rejected this notion. They ruled that the company served the same role as more traditional employment placement agencies, and should be treated as such.
Why is This Illegal?
Title VII of the Civil Rights Act prohibits employment discrimination on the basis of race, sex, religion, gender, or nationality, and additionally the Americans With Disabilities Act prohibits discrimination on the basis of disability status. These laws, among others, require employers to use non-discriminatory criteria for making employment decisions. They cannot offload liability for discriminatory employment practices simply because it was made with AI software, as they are still responsible for ensuring that software uses non-discriminatory criteria.
What Impact Might This Have Had?
The result of these issues is that many people may have been denied jobs who otherwise might have been employed based on their qualifications. This may have left people struggling to pay their bills, causing them to rack up debt simply trying to survive between jobs. Moreover, the people affected by these problems are more likely to be those who already suffer from the impact of discrimination, exacerbating what may already be bad circumstances.
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