Workday AI Bias Lawsuit, Why Millions Were Rejected by Algorithms and the 2026 “Opt-In” Payout Deadline
If you have applied for a job since 2020 and felt your resume was “vacuumed up” by an algorithm before a human ever saw it, your experience is at the heart of a massive legal battle. As of January 30, 2026, a nationwide collective action lawsuit against Workday, Inc. is moving forward in a California federal court. The case, Mobley v. Workday, Inc. (Case No. 4:23-cv-00770), alleges that Workday’s artificial intelligence (AI) screening tools systematically discriminate against job seekers based on age, race, and disability.
With a high-stakes opt-in deadline of March 7, 2026, millions of job applicants who were “denied employment recommendations” by Workday’s software now have a narrow window to join the litigation. This guide explains why the lawsuit happened, how the “AI gatekeeper” allegedly failed applicants, and the exact steps you need to take before the deadline expires.
What the Workday Lawsuit Involves: The “Invisible Gatekeeper”
The Workday lawsuit was triggered by a growing frustration among qualified professionals who found themselves trapped in a cycle of “instant rejections.” The lead plaintiff, Derek Mobley—a Black man over age 40 with a disability—claims he was rejected from over 100 positions despite being qualified. He alleges that Workday’s AI tools act as a “gatekeeper” that uses biased training data to filter candidates.
The core of the legal claim is that these algorithms don’t just “organize” resumes; they decide who to recommend and who to reject. By scoring and ranking candidates based on patterns from existing workforces, the lawsuit alleges the AI inadvertently penalizes older, non-white, or disabled applicants—effectively “replicating” human bias in a digital format.
Current Status and Recent Updates (January 2026)
- Case Status: Active Litigation / Collective Action Authorized
- Court: U.S. District Court for the Northern District of California
- Opt-In Deadline: March 7, 2026
Recent Update (January 21, 2026): Workday filed a motion to dismiss a specific portion of the claims, arguing that the Age Discrimination in Employment Act (ADEA) does not allow “disparate impact” claims (where a policy unintentionally harms a group) for job applicants. However, as of January 30, 2026, the court’s authorization for the nationwide collective remains active. This means the process for notifying potential members is still in full swing, and the March 2026 deadline is the most critical date for anyone looking to join.
Eligibility and Potential Payout Details
You may be eligible to join this collective action if you meet the following criteria:
- Date Range: You applied for a job through the Workday platform between September 24, 2020, and the present.
- Age Requirement: You were 40 years of age or older at the time of the application.
- The Result: You believe you were denied an employment recommendation or rejected due to Workday’s automated screening tools.
What is the payout? Because this is currently a “collective action” and not yet a finalized settlement, there is no fixed payout amount yet. In successful employment discrimination lawsuits like happend in cracker-barrel-racism-lawsuit, relief typically includes back pay, compensatory damages for emotional distress, and “injunctive relief” (forcing the company to change its software). Given that Workday noted in filings that its software has been used to reject over 1.1 billion applications, any eventual settlement could be historic in scale.
What You Must Know
1. Why “AI Bias” is the Core Problem
The lawsuit alleges that Workday’s AI models were trained on data from “incumbent employees,” which often reflects a less diverse workforce. This means the algorithm may have learned to favor younger candidates or those with specific resume formats that older or disabled workers don’t typically use. This “algorithmic discrimination” is why the court has allowed the case to proceed as a class action settlement precursor.
2. You Must “Opt-In” to Be Included
Unlike standard consumer class actions where you are automatically a member, this is a collective action. This means you are not part of the lawsuit unless you proactively sign a “Consent to Join” form. If you ignore the mailer or email and the deadline of March 7, 2026 passes, you lose your right to any financial recovery from this specific case.
3. Why “Agent Liability” is a Game-Changer
The court ruled in July 2024 that Workday could be held liable as an “agent” of the employer. This is a massive shift in law: it means that tech vendors can no longer hide behind their customers. If the AI makes the decision to reject you, the AI company is now just as responsible as the company you applied to.
What to Do Next
How to Join the Workday Lawsuit
If you believe you were unfairly screened out by Workday’s AI, visit the official court-authorized website: WorkdayCase.com.
- Verify your application dates: Check your email for “application received” or “rejection” notifications from companies using Workday from September 2020 to early 2026.
- Submit the Consent Form: You must fill out and electronically sign the “Opt-In Consent to Join Form” before the March 7, 2026 deadline.
- Save Your Rejections: If you have emails showing you were rejected within minutes of applying, keep those. They are powerful evidence of “automated” decision-making.
How to Stay Informed
- Official Case Website: WorkdayCase.com
- Court Docket: Search for Mobley v. Workday, Inc., Case No. 4:23-cv-00770 (Northern District of California).
- Watch for Eightfold AI Updates: A new lawsuit filed on January 20, 2026, against Eightfold AI is targeting similar algorithmic practices—keep an eye on that if you applied through their platform as well.
FAQs
Was Don Lemon’s arrest related to this Workday case?
No. Don Lemon’s 2026 arrest was related to a protest in Minnesota. There is no connection between his legal situation and the Workday AI discrimination lawsuit.
Is there a Workday settlement website for job seekers?
The official site to join the lawsuit is WorkdayCase.com. Be wary of “scam” sites asking for your Social Security number or payment to join.
How much will the Workday payout be?
It is too early to tell. However, in “collective actions” like this, if a settlement is reached, the fund is usually split among those who opted in, meaning the earlier you join, the better.
What is the “FACE Act” mention in other news?
The FACE Act relates to church and clinic entrance protections (relevant to the Don Lemon case), not the Workday employment lawsuit.
Does this lawsuit cover race and disability?
Yes, but the current collective action notice being sent out in 2026 is specifically focused on the age discrimination (ADEA) claims.
Who is eligible for the Workday payout?
Currently, anyone over 40 who applied via Workday since Sept 2020 and was rejected is eligible to join the collective action.
Last Updated: January 30, 2026
Disclaimer: This article is for informational purposes only and does not constitute legal advice.
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About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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