Workday Faces Class Certification Bid in AI Hiring Bias Suit
WDAY sits 80% above its 52-week low of $110.36.
Summary
Plaintiffs in a 2023 lawsuit alleging Workday's AI recruiting tools discriminate against Black, female, older, and disabled applicants have asked a federal judge to certify the case as a class action. The motion, filed last week, seeks four subclasses and cites 356 million applications processed through Workday Recruiting in 2024 alone. A hearing is set for March 9, 2027. The case tests whether software vendors can be liable for disparate impact under employment laws, and a class certification would significantly expand Workday's legal exposure. Workday denies wrongdoing, arguing its tools only assess job qualifications and that customers control hiring decisions. This development follows the company's strong Q2 results and ongoing Silver Lake take-private talks, adding a new legal overhang to the stock.
At the time of this announcement, WDAY was trading at $199.05 on NASDAQ in the Technology sector, with a market capitalization of approximately $46.7B. The 52-week trading range was $110.36 to $249.85. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.