Meta Sued Over Claims AI Was Used to Target Employees With Disabilities During Layoffs

Meta is facing a fresh legal challenge after 26 former employees filed a lawsuit accusing the company of using AI-powered software that allegedly discriminated against workers with disabilities and those who had taken medical leave during this year's mass layoffs.

The lawsuit, filed in a federal court in Oakland, California, claims Meta relied on AI-assisted performance metrics when deciding which employees would be laid off, resulting in disproportionate impacts on workers whose productivity had been affected by health conditions.

Employees Allege AI Penalised Medical Leave

According to the complaint, Meta used factors such as employee productivity and AI token usage as part of its evaluation process during layoffs.

The plaintiffs argue that employees who had taken time off because of disabilities, serious medical conditions or pregnancy naturally recorded lower activity levels, making them more likely to be selected for job cuts.

The lawsuit claims this amounted to discrimination under both federal and state employment laws.

Layoffs Affected Nearly 10 Per Cent of Workforce

Earlier this year, Meta announced plans to cut around 10 per cent of its global workforce, affecting nearly 8,000 employees as part of a broader restructuring effort.

The latest lawsuit relates to those layoffs, which began in May and were followed by additional rounds of job reductions.

The 26 plaintiffs, who have chosen to remain anonymous, are from California, New York, the District of Columbia and several other US states.

Meta Rejects the Allegations

Meta has strongly denied the claims. In a statement, the company said workforce management and organisational decisions were made by people rather than artificial intelligence.

The company described the allegations as lacking merit and indicated that it intends to defend itself against the lawsuit.

AI in HR Under Fresh Scrutiny

The case adds to growing concerns over the use of artificial intelligence in workplace decisions.

Many companies now use AI tools to assist with recruitment, performance reviews, promotions and workforce planning. However, regulators and legal experts have warned that poorly designed algorithms can unintentionally disadvantage certain groups if they rely on historical data or productivity metrics that fail to account for medical leave or other protected circumstances.

As AI becomes increasingly embedded in human resources, employers are facing greater pressure to ensure automated systems comply with employment and anti-discrimination laws.

A Case That Could Set a Precedent

If the lawsuit proceeds, it could become one of the most closely watched legal challenges involving the use of AI in employment decisions.

The outcome may influence how technology companies and other large employers deploy AI tools for workforce management, particularly when making high-impact decisions such as layoffs.

For Meta, the case represents another legal and regulatory challenge at a time when the company is already facing scrutiny over artificial intelligence, content moderation and user privacy across multiple jurisdictions.