AI Hiring Lawsuits Are Spreading: What Employers Need to Know

Artificial intelligence has become deeply embedded in hiring—from resume screening and video interviews to skill assessments. But with that convenience comes growing legal risk.

Last week, the ACLU filed a complaint against Intuit and HireVue, alleging their AI hiring technology discriminated against deaf and non-white applicants. This follows earlier lawsuits like Mobley v. Workday, where job seekers challenged biased outcomes from automated screening tools.

These cases send a clear message: the legal risk isn’t theoretical anymore—it’s multiplying.

Employers, Not Just Vendors, Are on the Hook

While vendors design the technology, courts and regulators consistently remind us that employers remain liable if biased tools are used in hiring. Outsourcing hiring tasks to AI does not shield organizations from lawsuits under the ADA, Title VII, or EEOC enforcement actions.

The lawsuits are also expanding beyond one company. It’s no longer just Workday in the spotlight—vendors like Intuit and HireVue are facing challenges, and more are likely to follow.

Why This Matters for HR Leaders and Executives

• Compliance pressure is rising. NYC Local Law 144 requires annual bias audits, and other jurisdictions are considering similar laws.

• Candidate trust is at stake. Discrimination against disabled or minority applicants damages employer brand and inclusion goals.

• Litigation risk is increasing. Even if your vendor is sued, your company can be named in a complaint if you used the tool.

How to Get Ahead of the Risk

Employers need to take proactive steps now to protect their hiring processes:

• Independent AI audits. A neutral evaluation can identify bias and disparate impact before regulators or plaintiffs do.

• Compliance scorecards. Measuring hiring tools against EEOC, ADA, and Title VII standards helps prove good-faith efforts.

• Actionable fixes. Adjusting configurations, scoring criteria, or data inputs can dramatically reduce risk.

That’s where EquiScan, BiasSignal’s AI hiring audit, comes in. We provide:

• A detailed fairness & compliance report

• A 30-point risk scorecard tailored to legal standards

• Practical recommendations for safer, more inclusive hiring outcomes

The Bottom Line

The wave of AI hiring lawsuits is growing. What started with Workday is now hitting Intuit, HireVue, and more. Employers who rely on these tools can no longer assume they’re protected.

By auditing your AI systems today, you not only protect your company from litigation—you also build a fairer, more inclusive hiring process that reflects your values.