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Derek Mobley applied to over 100 jobs through Workday's platform over seven years.
He was rejected within minutes. Every time.
Mobley is an African American male over 40 with a finance degree from Morehouse College. His lawsuit alleged that Workday's AI screening tool systematically discriminated against him based on race, age, and disability.
In July 2024, a federal judge allowed the case to proceed. By May 2025, it achieved nationwide class action certification, potentially covering millions of applicants over 40.
Here's the part that matters for every organization using Workday or any AI hiring tool:
The court ordered Workday to produce a list of every customer that had used its AI features since September 2020. Not just Workday. Every company that used the tool. Hundreds of organizations suddenly exposed to discovery, investigation, and potential liability for an AI they didn't build and couldn't see inside.
You didn't build the AI. You're still liable.
The court was clear: drawing a distinction between software decision-makers and human decision-makers would gut anti-discrimination laws. Your vendor's AI is making decisions on your behalf. Those decisions are your decisions.
And your vendor's contract almost certainly doesn't protect you. 88% of AI vendors cap their own liability at monthly subscription fees. Only 17% provide warranties for regulatory compliance. Most contracts require you to hold the vendor harmless for discriminatory outcomes.
Your vendor is protected. You aren't.
The gap most organizations haven't closed:
Most organizations evaluate AI vendors the same way they evaluate any software. Features, pricing, integration, support.
Nobody asked: What decisions is this AI making on our behalf? How was it trained? What biases might be baked in? What's our liability exposure when it gets something wrong?
Those aren't IT questions. They're AI governance questions. And the organizations that can't answer them are the ones showing up in class action lawsuits alongside their vendors.
AAISM covers exactly this. How to evaluate AI vendors for risk before deployment. How to build governance frameworks that account for AI decision-making liability. How to implement monitoring that catches discriminatory or incorrect AI outputs before a court does.
We just launched the AAISM MasterClass so you can study at your own pace. Our next AAISM Bootcamp runs July 20-22.
Best,
The DestCert Team
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