Imagine you’ve just spent hours perfecting your resume. You’ve matched every keyword, polished every bullet point, and finally hit "Submit" for your dream job. You feel confident. You are qualified, experienced, and eager. But within seconds-faster than any human could have possibly read your name-you receive a generic "Unfortunately, we will not be moving forward with your candidature, thank you!" email. You might wonder: How did they review and reject so quickly? Did anyone even see my application properly? Or did an algorithm decide my fate?
As Artificial Intelligence becomes the new "Gatekeeper" of the professional world, two major names in the industry: Workday and Eightfold AI-have recently found themselves in the crosshairs of legal battles over AI enabled Hiring Bias. For the job seeker, these cases aren’t just corporate drama; they are a vital wake-up call about your rights and a fair chance to employability.
The Real-Life "Algorithm Trap": Derek Mobley’s Story
Derek is a high-achieving professional with a bachelor's degree in finance and years of solid experience. Between 2018 and 2024, Derek applied for over 100 different positions at various major companies. The common thread? Every single one of those companies used Workday’s AI-powered screening tools. Despite his clear qualifications, Derek-a
Black man over the age of 40 with a health condition received rejection after rejection, often almost instantly. Derek didn't believe this was a coincidence or a reflection of his skills. He filed a class-action lawsuit, alleging that Workday’s AI acted as a "digital gatekeeper" that relied on biased data.
The lawsuit claimed that the software’s personality tests and screening algorithms were built in a way that unfairly filtered out candidates based on race, age, and disability. A stark reminder that
You can be the "perfect" candidate on paper, but if the "math" behind the hiring tool is flawed, the digital door remains locked. This is the heart of the AI Hiring Bias conversation.
| Class action cases against > |
Eightfold AI |
Workday |
| What they offer |
Vendors for Employers: AI talent intelligence platform; used by large employers for candidate scoring & matching |
Vendors for Employers: HR & enterprise software provider; AI-powered applicant screening & recommendations |
| Key Allegations |
Filed CA class action; AI-generated candidate profiles & match scores; alleged FCRA violations (consumer report theory) |
Mobley v. Workday; alleged age 40+ disparate impact; AI screening disadvantage; ADEA claims |
| Legal Basis |
Fair Credit Reporting Act (FCRA); state consumer reporting laws |
Age Discrimination in Employment Act (ADEA); federal anti-discrimination law |
| Impact on Jobseekers (Alleged) |
Profile scoring without notice/consent; limited transparency; no clear dispute mechanism (per complaint) |
Older applicants allegedly screened out via algorithmic recommendations |
*updated as of 25-Feb-2026
The Plot Twist: Why the "Fair Credit Reporting Act" Matters You might think the Fair Credit Reporting Act (FCRA) is something that only matters when you're applying for a credit card or a home loan. But here is the professional secret: it also governs "consumer reports" used for employment. Historically, if a company ran a traditional background check on you and denied you a job because of it, the FCRA required them to tell you. They had to give you a chance to see what was in that report and fix any mistakes. Today, legal experts and advocates are arguing that AI hiring tools are essentially "Digital Background Checks."
In the case of Eightfold AI, concerns have been raised about how their "predictive" tools scrape the internet to build "hidden dossiers" on candidates. If an AI tool generates a "score" or a "fit recommendation" about you based on data gathered from across the web, it might legally be considered a consumer report. The Lesson: If an AI "report" is the reason you didn’t get the job, you may have the right under the Fair Credit Reporting Act to know what that report said and the right to dispute inaccurate information.
The law is starting to insist that if a machine judges you, you have the right to see the evidence. Algorithmic bias cases like this signal that even neutral-seeming AI tools can have disparate impacts and staying informed about how your data is evaluated may be crucial to asserting your rights.
The hiring approach requires Putting the "Human" Back in direct control of the process. In a world where algorithms can feel cold, invisible, and exclusionary, it is more important than ever to seek out paths that prioritize fairness and transparency. This is where many hiring platforms like hiringplug™ are changing the narrative. While "Black Box" systems from major tech giants are being scrutinized for their automated rejections, hiringplug™ focuses on a Human-Centric AI philosophy. By acting as a sophisticated bridge between employers and a curated marketplace of expert recruiters, they ensure that technology is used to surface the applicant's unique talents rather than hide them behind a biased filter. hiringplug™'s goal is "augmented intelligence" for recruiters where AI enables to find the best version of your professional story, ensuring that a human set of eyes-and a human heart-is involved in the decision-making process, while preventing the "Mobley Trap."
For today's Jobseekers,
these 3 Steps are vital for protectection in the era of the "Black Box" hiring process:
- Demand Transparency: In many regions, new laws now require companies to disclose if they are using AI to screen you. Don't be afraid to ask a recruiter: "Is an automated tool being used to rank my application, and what data is it looking at?". It's a good idea to also document your experience.
- Audit Your Digital Footprint: Since AI tools like Eightfold often scrape public data, ensure your LinkedIn, GitHub, and professional portfolios are consistent and up-to-date. If the AI is pulling "ghost data" from ten years ago, it could be fueling AI Hiring Bias against you today.
- Watch for "Adverse Action": Under the Fair Credit Reporting Act, if a company rejects you based on a third-party report, they are technically supposed to give you a "Pre-Adverse Action" notice. As AI tools are increasingly classified as "reporting agencies," you may soon have more power to challenge automated rejections that feel unfair. Keep abreast with the developments of these cases.
The tools of the trade are changing, but your right to a fair shot at a career should never be compromised. These legal battles highlight that Job seekers are no longer willing to be silenced by an algorithm. By knowing your rights in the AI era and choosing to engage with forward-thinking ecosystems, you choose a future where technology serves the candidate. A reminder that every person's CV tells a story, not merely a data point for an AI to process.