Workday is seeking to dismiss a class-action lawsuit alleging AI-based hiring discrimination. The company argues that California’s Fair Employment and Housing Act (FEHA) does not govern hiring decisions made outside the state.

The legal challenge follows a judge's decision to conditionally certify a class of job applicants over age 40 in the Mobley v. Workday case. Plaintiffs contend California law applies because Workday developed and managed the AI technology at its state headquarters.

Workday maintains its software evaluates job-related qualifications and operates with necessary human oversight. The company's lawyers presented these jurisdictional arguments during a recent court hearing.