Workday Lawsuit Proves Discrimination Risk: Audit Your AI Now

Well, here it is, a federal judge just let a discrimination lawsuit move forward against Workday, the tech giant behind hiring software used by over 10,000 companies. Who is the plaintiff? A Black man over 40 with anxiety and depression who says he was auto-rejected more than 100 times by companies using Workday's AI.

He alleges the algorithm itself is biased, filtering out applicants based on race, age, and disability. This isn't just speculation, and he argues that it is supported by studies, which have shown AI hiring tools regularly replicate the same discrimination humans are supposed to avoid.

In July 2024, we blogged about New York’s DFS warning insurers, if you’re using AI and third-party tools, you’re responsible for making sure they don’t discriminate. That means audits, transparency, and clear legal accountability, even if the tool wasn’t built in-house.

In the New York Law Journal, we outlined exactly what a proper AI audit looks like, because when the lawsuits come, and they are coming, ignorance isn’t a defense, but a proper audit and intervention are very good defenses.

Workday says it “opposes discrimination.” Great. But denying wrongdoing doesn’t stop a lawsuit from moving forward, or a reputation from unraveling. If you’re using AI in hiring or other decision-making, the Workday case is a giant red flag. Start auditing NOW.

If your software is doing the sorting, you better know how it’s doing it, and who it’s leaving out.

So here’s the question: Have you audited your AI tools yet? 

New Discrimination Complaint Filing and Investigation Procedure in NYS Proposed by Division of Human Rights

The New York State Division of Human Rights, which oversees the administrative adjudication of discrimination claims throughout the State, has proposed new rules for Complaints and Investigations in the New York State Register on June 18, 2025. 

Under this Proposed Rule Making, the following changes are submitted for comment on or before August 17, 2025 to Erin Sobkowski, Division of Human Rights, 350 Main St., 10th Fl., Suite 1000B, Buffalo, New York 14202, (716) 847-7679, email: Erin.Sobkowski@dhr.ny.gov:

• Section 465.1, Definitions, has been amended to reflect the change in title to the Deputy Commissioner of Investigations.
• Section 465.2, Service of Papers, has been amended to provide for electronic service of papers. In addition, the provision regarding service on nonresident persons and foreign corporations has been removed because such service is now dictated by the Civil Practice Law and Rules. 
• Subdivision 465.3(a) is amended to clearly state that any person within the meaning of Executive Law Section 292(1) may file a complaint, or, on behalf of such person, an attorney, legal representative appointed by a court, or a custodial parent or legal guardian of a person under the age of 18. In addition, language has been added to clarify what type of organization may file a complaint, consistent with caselaw. The language has been updated to reflect the current title of the Executive Director of the Justice Center for the Protection of People with Special Needs. The provision permitting class actions has been deleted pursuant to a court decision disallowing the division from awarding relief to persons who did not file a complaint. 
• Subdivision 465.3(b), Form, is updated to reflect a statutory amendment made to the Human Rights Law pursuant to Chapter 304 of the Laws of 2021, permitting a complaint to be verified by declaration. In addition, this section requires complaints to be in a form promulgated by the Division. Such amendment is necessary to better ensure complaints filed with the Division meet sufficient standards to allow for effective investigation and adjudication and redirect Division time and resources from attempting to correct complaints that do not meet such standards. 
• Subdivision 465.3(c), Contents, is amended to clarify that complaints must include: a concise statement of the alleged discriminatory acts, sufficient to enable the division to investigate the claims; sufficient identification of the complainant(s) and the person(s) alleged to have committed unlawful discriminatory acts; factual allegations sufficient to support the claim. These changes are required to better ensure that complaints received by the Division contain sufficient information to allow for timely and effective investigation and to prevent unnecessary resources from being spent correcting complaints that do not meet legal standards for filing. 
• Former subdivision 465.3(d), Place of Filing, has been removed to conform with the modern technological reality that complaints may be filed virtually. 
• Former Subdivision 465.3(e), Time of Filing, is now Subdivision 465.3(d), and has been amended to reflect a statutory amendment, pursuant to Chapter 656 of the Laws of 2023, requiring a complaint be filed within three years of the alleged discriminatory conduct. 
• Former Subdivision 465.3(f), Manner of filing, is now Subdivision 465.3(e), has been amended to reflect current use of technology, including the use of an online portal for filing and the creation of a telephonic option for filing complaints with the assistance of the Division’s call center. 
• Section 465.5, Withdrawals, discontinuances and dismissals before a hearing, subdivisions 465.5(a) and (c) have been amended to clarify that a complainant may withdraw their complaint before a determination of probable cause has been issued and may discontinue their complaint with the consent of the commissioner after such a determination is made. A new sentence has been added to subdivision 465.5(c) to reflect the Division’s practice, in effect since October 12, 2021, that the commissioner will not consent to discontinue a complaint that has been settled privately without the Division. 
• Subdivision 465.5(d) has been amended to clarify that the commissioner may duly appoint any Division employee to act on behalf of a regional director or the director of housing investigations. 
• Subdivisions 465.5(f) and (g) are added to include other types of dismissals issued by the Division. 
• Section 465.6, Investigations, has been amended to clarify that the commissioner may duly appoint any Division employee to act on behalf of a regional director or the director of housing investigations. 
• Section 465.8, Probable cause review, has been deleted because it is obsolete due to electronic records storage and is otherwise unnecessary because it requires duplicative review of probable cause determinations.

However, the actual text of the proposed changes is not provided and must be requested from Edith Allen, Division of Human Rights, One Fordham Plaza, 4th Floor, Bronx, New York 10458, (718) 741-8398, email: Edith.Allen@dhr.ny.gov. We've made that request, so stay tuned.