AI hiring lawsuit: Workday's bias-testing data is attorney-client privileged (blog.mccoy.io)

On May 29, 2026, Magistrate Judge Laurel Beeler ruled in the Mobley v. Workday case that Workday's internal bias-testing data is protected by attorney-client privilege, preventing plaintiffs from accessing it. Additionally, the court decided that Workday does not control its customers' applicant data and thus is not obligated to produce it. However, Workday must provide its own EEO-1 and OFCCP filings. This ruling emphasizes the importance of careful AI tool selection in hiring processes, as employers using automated screening tools may face increased legal risks associated with bias if they cannot access their vendors' testing data. This case is significant for the AI/ML community because it sets a precedent regarding the legal responsibilities of AI service providers in employment discrimination cases. The court's decision suggests that when employing AI tools, organizations must be aware of the implications of tool design—automated decision-making can lead to greater liability. Employers should prioritize tools that support human oversight in the decision-making process to mitigate legal risks and ensure equitable hiring practices. The ruling indicates that while vendors may protect certain bias-testing data, the onus remains on employers to manage their own applicant data and outcomes, reinforcing the critical balance of technology and human judgment in recruitment.