Meta Faces Lawsuit Over Alleged AI Bias in Layoff Decisions

Tech giant Meta is facing a first-of-its-kind lawsuit in California accusing the company of using artificial intelligence tools that allegedly targeted employees with disabilities or those who took protected sick or family leave for layoffs.

The lawsuit was filed in federal court in Oakland, California, by a group of 26 former employees who submitted their complaint anonymously. According to the plaintiffs, who are from several U.S. states, including California and New York, Meta used internal AI software to monitor employee activity and evaluate performance, resulting in systematic discrimination against workers who missed work because of medical conditions or to care for family members.

According to the lawsuit, the company relied on advanced systems that analyzed data such as typing speed, screen activity, browsing history, and participation in internal communications. The complaint alleges that tools including Meta's internal language model, "Metamate," and other machine learning systems were used to rank employees and help determine layoff lists.

The plaintiffs argue that relying on metrics based on continuous work activity and real-time analysis of digital communications created built-in bias, preventing a fair evaluation of employees who took legally protected sick leave, family leave, or maternity leave.

According to the lawsuit, the alleged conduct violates both federal and state anti-discrimination laws, as well as newer California and New York laws requiring companies to assess AI systems for bias before using them in employment decisions.

The workers have asked the court to issue a temporary injunction blocking the planned layoffs, which are scheduled to take effect later this month, while they pursue the matter through private arbitration.

Meta has denied the allegations, calling the lawsuit baseless. A company spokesperson said employment and workforce decisions "were and continue to be made by people, not AI systems."

The lawsuit comes after Meta carried out a broad restructuring that eliminated thousands of jobs as the company continues to invest heavily in the development and integration of artificial intelligence technologies.