Meta Faces Landmark Lawsuit as 26 Employees Allege AI-Based Layoff System Discriminated Against Workers on Medical and Family Leave
Meta Platforms has been sued by 26 current and former employees in what is being described as one of the first major legal challenges in the United States over the alleged use of artificial intelligence to make discriminatory layoff decisions. The lawsuit, filed in a federal court in Oakland, California, claims the company relied on AI-assisted performance evaluation systems while implementing its latest round of job cuts, which affected nearly 8,000 employees—around 10% of its global workforce.
According to the complaint, Meta used a combination of automated productivity metrics, algorithm-assisted performance rankings, AI token usage, keystroke and activity-monitoring data, and internal AI tools to determine which employees would be selected for termination. The plaintiffs argue that these systems inherently disadvantaged employees who had taken approved medical, parental or family leave, as they naturally generated lower productivity data during periods of protected absence.
The employees allege that the company’s methodology disproportionately targeted individuals with disabilities, pregnant employees, and workers who exercised their rights under medical and family leave laws. They contend that Meta’s automated evaluation process failed to account for legally protected absences, effectively penalising them for circumstances safeguarded under federal and state anti-discrimination statutes. The lawsuit cites alleged violations of the Americans with Disabilities Act (ADA), the Family and Medical Leave Act (FMLA), the Pregnancy Discrimination Act and corresponding California employment laws.
The plaintiffs are seeking a preliminary injunction to prevent their layoffs from taking effect while the dispute is adjudicated. They argue that immediate termination would result in irreparable harm, including loss of health insurance, employment benefits, income and, for some foreign workers, potential immigration consequences. Many of the employees were scheduled to lose their jobs later this month, making the request for urgent judicial intervention a key aspect of the litigation.
Meta has strongly denied the allegations. A company spokesperson stated that the claims lack merit and asserted that workforce management and organisational decisions were made by human managers rather than artificial intelligence systems. The company maintains that AI tools did not determine who would be laid off and has indicated it will vigorously defend itself in court.
The lawsuit nevertheless raises broader concerns about the growing use of AI in workplace management. Employment law experts note that even if AI is used only to assist human decision-making, employers remain legally responsible if automated systems produce discriminatory outcomes or disproportionately affect protected groups. The case is therefore expected to become an important test of how existing anti-discrimination laws apply to AI-assisted employment decisions and may influence future regulation of workplace AI across the technology industry.
