Meta is facing a new legal challenge after 26 former employees filed a lawsuit alleging that the social media company used artificial intelligence (AI)-based systems to make decisions during a large-scale workforce reduction, disproportionately affecting employees with disabilities, medical conditions, or those who had taken medical leave.
The lawsuit, filed in a federal court in Oakland, California, claims that Meta relied on metrics such as productivity performance and AI-generated scores while laying off thousands of employees earlier this year.
According to the plaintiffs, these criteria unfairly disadvantaged workers who had been absent due to illness, disability, or caregiving responsibilities.
The employees said they were informed in May that their employment would end on July 22. They have asked the court to temporarily halt the layoffs until private arbitration proceedings related to their claims are completed.
Responding to the allegations, a Meta spokesperson dismissed the claims as baseless, stating that workforce decisions at the company are made by human managers, not by artificial intelligence.
The lawsuit further alleges that Meta used several internal AI systems to evaluate employees, including a large language model known as “Meta Mate,” an employee information platform called “Second Brain,” and a productivity scoring system that analysed keyboard activity, screen usage, emails, and browser history.
The plaintiffs also claim that Meta failed to test its AI systems for potential bias, alleging violations of newly introduced regulations in California and New York City governing the use of AI in employment-related decisions.
The case is being viewed as a landmark legal challenge, as it is believed to be the first lawsuit against a major U.S. technology company alleging the use of artificial intelligence in employee layoff decisions.
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