• AI for HR Hub
  • Posts
  • AI for HR Hub Newsletter # 36 AI on Trial: What the Workday Lawsuit Means for HR’s Future

AI for HR Hub Newsletter # 36 AI on Trial: What the Workday Lawsuit Means for HR’s Future

Welcome to Your AI for HR Hub!

"Simplifying Your AI, One Boss-Move™ at a Time."

Today’s Insights and Helpful Hints

  • AI on Trial: What the Workday Lawsuit Means for HR’s Future

  • 5 AI Tools to Enhance Your Productivity

  • Prompt of the day: Compliance Training Content

  • Fun with AI Images: HR Superheros

AI FOR HR NEWS

AI on Trial: What the Workday Lawsuit Means for HR’s Future

Fast-growing technology is relying on artificial intelligence to improve its services. Today, AI is the backbone of modern human resources—screening resumes, automating HR tasks, and even predicting employee attrition before it happens.

For HR professionals, the Workday lawsuit is much more than a headline—it’s a wake-up call. The case is prompting organizations to scrutinize not only their use of AI but also their vendor relationships, and ultimately, their commitment to fair and ethical hiring practices.

The Lawsuit: What Happened?

In 2025, a group of job seekers took Workday to federal court. They claimed that the company's software—powered by AI algorithms—was not doing a fair job of deciding who should move forward in the hiring process. According to the plaintiffs, the software produced discriminatory results, particularly harming Black applicants, older workers, and people with disabilities.

The lawsuit claims Workday is responsible under federal civil rights laws for enabling bias in hiring, even if that bias is unintentional. (See AI on Trial: Implications of the Workday Lawsuit for Employers)

Why This Matters: Compliance, Risk, and Trust

AI hiring tools often promise to eliminate human bias, but bias can sneak in through training data or system design flaws. The Workday case underscores the growing legal expectation that companies must proactively audit their AI for potential disparate impact, rather than relying solely on vendor assurances.

Here’s what’s at stake:

1. Legal Exposure Extends to Employers
Even if you use a third-party vendor like Workday, your organization is still responsible for complying with anti-discrimination laws like Title VII, the ADA, and the ADEA. “We didn’t build it” is not a defense.

2. Auditability and Explainability
A problem arises when your AI cannot clarify how it makes decisions. The EEOC, Department of Justice, and other agencies have issued guidance recommending employers audit algorithms for bias and ensure transparency in automated decision-making.

3. Reputation and Candidate Experience
Beyond legal risks, there’s the business risk: If applicants see your selection process as biased, your employer brand can suffer. In today’s market, top candidates have choices, and fairness matters.

What Should HR Professionals Do Now?

The lawsuit against Workday shouldn’t prompt HR to ditch all AI tools, but it should motivate every team to create a thoughtful plan. Here’s how to get started:

1. Examine Your Technology
Partner with your IT and procurement teams to conduct a comprehensive inventory of all AI-powered tools utilized in the hiring process. Ensure that each AI solution is trained using accurate and relevant data that reflects your organization. Engaging qualified AI consultants to assist with data preparation and model validation is a recommended best practice. This proactive approach supports effective risk management and promotes fair, reliable outcomes.

2. Conduct Regular Bias Audits
Set a routine for internal or third-party audits to look for signs of disparate impact. Don’t treat this as a “set and forget” compliance checkbox—review regularly, especially if you change hiring processes or data sources.

3. Refresh Your Candidate Communication
Be transparent with candidates about the use of AI in hiring. Transparency builds trust, even when automation is involved.

4. Involve Legal Early
Before launching new AI features, consult legal counsel on potential risks. Ensure that your vendors also collaborate with your legal team—compliance and fairness are a team effort.

5. Stay Up to Date on Regulations
Laws around AI in employment are evolving fast. States and cities (like New York City and Illinois) already require algorithmic bias audits or candidate notification.

The Takeaway

The Workday case is a call to action for HR leaders. Embracing AI isn’t just about innovation or efficiency—it’s about responsibility. The organizations that lead in ethical AI and transparency will not only stay compliant but also build the trust that defines the future of hiring.

Further reading:

Are you exploring ways to streamline your business with AI and Automation? We’re here to help make the process easier for you and your team. Click the link below to fill out our form, and we’ll follow up with tailored solutions to fit your needs.

Ready to get started? Fill in the form.


Our FREE AI Sprint Series 4.0 Session 1 is Friday, June 6, at 10:30 a.m. Central.


Check out our topics for Series 4:

  • Session 6: The Future is Now – Planning AI-Enhanced HR Strategies

Use the links below to register for access!

Attend all 6 Sprints 4.0 for FREE  (AIforHR Hub Members: Register here. You are FREE VIPS!) or

Register as a VIP and get all 6 Sprints PLUS replays and handouts for only $75.

YES! I WANT TO DO AI LIKE A BOSS™

PRODUCTIVITY

5 AI Tools to Enhance Your Productivity*

  1. UnlimitedBG – Edit backgrounds out of your photos anytime with unlimited processing and no internet connection required.

  2. HyperPresent - Build professional, engaging presentations with simple instructions, then export your finished presentation in any format.

  3.  VoiceType.com - Write 9x faster across all your apps with 99.7% accuracy by using your voice instead of your keyboard.

  4.  Subatomic - Add AI co-workers to your team that streamline tasks, handle complex projects, and help you scale.

  5. Airial Travel - Save time and eliminate guesswork with personalized, AI-generated travel plans.

    Each platform aims to boost productivity and free up time for what only humans can do—like showing empathy, mentoring, and strategic planning.

AI for HR Hub empowers you with powerful tools and 40-plus pre-trained assistants to manage every aspect of HR. Explore features like automated policy creation, employee engagement insights, and much more.

  • Access ChatGPT, Claude, Llama, and Gemini in one place

  • Translate virtually any language

  • Build custom AI assistants

  • Streamline compliance and documentation processes

PROMPT OF THE DAY

Compliance Training Content

Prompt:"Create a 5-minute microlearning script on the basics of workplace harassment prevention, suitable for new hires. Include an engaging scenario and two quick knowledge-check questions."

FUN WITH AI IMAGES

HR Superheroes

Prompt: "Bold and inspiring comic cover art showing a team of HR professionals as superheroes: "HR Office" written on top of the image. A female caped leader with clipboard, positivity ray-shooter energizing coworkers, "compliance defender" on a shield, and speedy sidekick shuffling resumes with the title "Recruiting" on her shirt, others with titles written on their shirts "Payroll", "Training", comic book style, strong reds, blues, and golds with high-contrast backgrounds, gleaming office backdrop, energetic lighting and dynamic shadowing, classic comic book cover composition with powerful central figures and team synergy, influenced by Silver Age comic conventions."

 PARTNER WITH US!

AI for HR Hub always seeks ways to partner with vendors serving the human resources community. Contact us, and let’s chat about the possibilities! [email protected]

❓ What did you think about today's newsletter?

Be honest! Your feedback means everything to out team.

Login or Subscribe to participate in polls.

Thanks for reading!

Until next time,

AI for HR Hub™ Team

Get a List of the Best HRIS Software for Your Company

Stop wasting time on endless research and confusing options.

Our HR Software experts provide you with tailored recommendations from our database of 1,000+ vendors across HRIS, ATS, Payroll, and HCM.

✅ 15 minutes vs. hours of demos
✅ 1:1 help from an HR Software expert
✅ No spam, no sales pressure

Some links may be affiliate links. If you purchase through them, we may earn a commission at no cost to you.

Disclaimer

Please review and use the information provided at your own discretion. The content presented here is for informational purposes only and should not be construed as legal advice. Users are advised to:

  1. Carefully evaluate all information before application

  2. Consult with appropriate professionals or experts when necessary

  3. Understand that circumstances may vary, and what works in one situation may not be suitable for another

The authors and distributors of this information cannot be held responsible for any consequences resulting from its use. By proceeding, you acknowledge that you have read and understood this disclaimer.