AI Hiring and Layoff Lawsuits Put Employers on Notice

The contingent workforce ecosystem can no longer assume that liability rests solely with software vendors, nor can vendors assume employers shoulder all responsibility.

Litigation on regarding the use of AI in program management is spreading and evolving, and the latest legal trends indicate courts and regulators are treating AI employment decisions much like human-based decisions.

A case against Workday is establishing the foundation for AI hiring litigation, while one against Eightfold AI may create precedent on the use of artificial intelligence in background checks. Further, lawsuits filed against IBM and Meta suggest the next wave of litigation will focus on AI-enabled employee monitoring, performance management, retention and termination decisions.