A group of 26 former Meta employees has filed a federal lawsuit alleging the company used artificial intelligence systems that unfairly targeted workers on protected leave for layoffs. The lawsuit, filed in Oakland, California, claims that Meta's AI tools did not account for employees taking medical, parental, or family leave when ranking them for termination. This process, the plaintiffs assert, resulted in those on leave being disproportionately selected for dismissal.
The former employees contend that Meta relied on a "constellation of internal artificial intelligence systems" to identify and rank workers for its recent mass layoffs. These systems reportedly included AI performance ratings, AI token usage data, and keystroke and activity monitoring. The lawsuit alleges that these metrics were used to assess employee performance and productivity without considering absences due to protected leave or medical conditions. The plaintiffs argue that this approach penalized employees for exercising their legal rights to take time off.
The lawsuit states that Meta violated federal and state laws, including the Family and Medical Leave Act, the Americans with Disabilities Act, and the Pregnancy Discrimination Act. It also claims Meta failed to test its AI systems for bias, contravening recent laws in California and New York City. The plaintiffs, who filed anonymously, come from six states and the District of Columbia. They were notified in May that their jobs would be eliminated, with terminations set to take effect on July 22.
Meta has denied the allegations, with a company spokesperson stating that workforce management and organizational decisions are made by people, not AI. The company asserts that the claims lack merit. This lawsuit appears to be the first legal challenge against a major U.S. company specifically alleging the use of AI in layoff decisions that resulted in discrimination.
Meta announced in May its plan to lay off 10% of its global workforce, amounting to nearly 8,000 employees, citing ongoing investments in AI and data center infrastructure. CEO Mark Zuckerberg has since indicated that no further company-wide layoffs are expected this year. The plaintiffs are seeking a court order to block Meta from finalizing the layoffs while their claims are pursued, potentially through private arbitration as stipulated in Meta's employment agreements.
The core of the plaintiffs' argument rests on the claim that Meta's AI systems, while perhaps facially neutral, had a disparate impact on protected groups. These systems, they contend, did not account for the temporary reduction in output or activity that naturally occurs when an employee is on leave or managing a disability. The lawsuit suggests that Meta's performance metrics, such as AI token usage and digital productivity tracking, served as proxies for protected status, leading to discriminatory outcomes. The employees are asking for relief that could include reinstatement, back pay, and other damages.