Meta Sued Over Claims AI Tools Discriminated Against Workers With Medical Conditions

The complaint, filed in US District Court in Oakland, California, argues that internal evaluation systems used by the Facebook and Instagram parent company unfairly disadvantaged employees who had taken medical leave or experienced periods of reduced activity because of health issues.

According to Reuters, which first reported the lawsuit on Tuesday, the former employees contend that Meta incorporated factors such as productivity measurements and usage data from AI tools when determining which workers would be included in mass job cuts announced earlier this year. Reuters reported that the plaintiffs, who filed anonymously, are seeking legal remedies under federal and state anti-discrimination laws.

Meta announced in 2026 that it planned to reduce its global workforce by approximately 10%, affecting nearly 8,000 employees, as part of a broader restructuring centered on artificial intelligence initiatives and organizational changes.

In a statement cited by Reuters, a Meta spokesperson rejected the allegations, saying workforce decisions were made by people rather than automated systems and arguing that the claims lack merit.

The lawsuit represents one of the most significant legal challenges to date over the use of AI-related tools in employment decisions at a major technology company. The plaintiffs allege that Meta failed to adequately test or audit the systems for discriminatory effects, potentially violating protections for workers with disabilities, employees taking medical leave and pregnant workers.

Read more: Meta Ordered to Grant Rival AI Chatbots Free WhatsApp Access During EU Antitrust Probe

The case also arrives as regulators in the United States increasingly scrutinize algorithmic decision-making in hiring, promotions and workforce management.

In recent years, policymakers have warned that AI systems trained on historical workplace data may reproduce or amplify existing biases. The U.S. Equal Employment Opportunity Commission has issued guidance cautioning employers that AI tools used in employment decisions remain subject to federal anti-discrimination laws, including the Americans with Disabilities Act and Title VII of the Civil Rights Act.

New York City became one of the first U.S. jurisdictions to require bias audits for certain automated employment decision tools before they can be used in hiring and promotion processes. California lawmakers have also advanced proposals aimed at increasing transparency and accountability around AI systems used in workplace settings.

The allegations against Meta emerge amid a broader transformation across the technology sector as companies accelerate investments in artificial intelligence while restructuring their workforces. Meta has committed substantial resources to AI infrastructure and products, with Chief Executive Mark Zuckerberg describing artificial intelligence as a central priority for the company’s long-term strategy.

The company’s growing focus on AI has also attracted broader regulatory attention. Meta is already the subject of antitrust scrutiny in multiple jurisdictions over its market power in social networking and digital advertising, and policymakers have increasingly debated whether dominant technology platforms possess sufficient safeguards to prevent potentially harmful uses of AI systems.

Labor advocates and regulators have argued that greater transparency may be necessary when large companies deploy algorithmic tools that influence employment outcomes, particularly given the scale at which major technology firms can implement such systems across thousands of workers.

According to Reuters, the 26 plaintiffs come from six U.S. states and the District of Columbia. The lawsuit seeks to halt additional layoffs while legal proceedings continue and could test how existing employment discrimination laws apply to AI-assisted workplace decisions.

Source: Reuters