Meta Faces Lawsuit Over Alleged AI Role in Employee Layoffs
Twenty-six Meta Platforms employees have filed a lawsuit alleging that the company used AI-assisted software in a way that unfairly affected workers with disabilities or those who had taken medical leave.
The case was filed in federal court in Oakland, California, late Monday. It challenges Meta’s alleged use of artificial intelligence when selecting employees for large-scale layoffs.
Workers Claim AI Metrics Created Unfair Disadvantages
According to the lawsuit, Meta considered factors such as employee productivity and the use of AI tokens when deciding which jobs to eliminate.
The plaintiffs argue that these measurements placed some workers at a disadvantage. Employees who had missed work because of health conditions, pregnancy, medical leave or family-care responsibilities may have recorded lower activity levels.
The lawsuit claims that these circumstances were not properly considered when employees were ranked for termination.
Employees Seek to Temporarily Block the Layoffs
The 26 employees were informed in May that their positions would be eliminated beginning on July 22.
They are asking the court for a preliminary order that would temporarily prevent Meta from completing the layoffs while their claims proceed through private arbitration.
Meta’s employment agreements reportedly require workers to resolve most workplace disputes through individual arbitration. However, the plaintiffs argue that these rules do not prevent them from requesting temporary protection from a court.
Meta Denies the Allegations
A Meta spokesperson rejected the claims and said the lawsuit had no merit.
The company stated that workforce and organizational decisions were made by people rather than artificial intelligence.
Meta has therefore disputed the employees’ claim that AI systems were responsible for selecting them for termination.
Case Could Test AI Use in Workplace Decisions
The lawsuit appears to be one of the first major legal challenges involving the alleged use of AI during corporate layoffs in the United States.
The case could attract significant attention because companies are increasingly using automated systems to measure performance, organize work and support employment decisions.
It may also raise broader questions about how employers should test AI tools for discrimination and bias.
Meta Cut Thousands of Jobs
Meta reportedly reduced its global workforce by approximately 10% in May, affecting nearly 8,000 employees.
Further job reductions had also been expected later in the year. However, CEO Mark Zuckerberg later said he did not anticipate additional company-wide layoffs during the remainder of the year.
The workforce changes are part of a wider restructuring effort as Meta increases its spending on artificial intelligence.
Meta Expands AI Across Its Business
The company is placing greater emphasis on AI agents in both its consumer products and its internal operations.
Meta has been integrating artificial intelligence into software development, employee workflows, advertising tools and communication systems.
The lawsuit claims that this growing reliance on AI also influenced the way the company assessed employee performance.
Plaintiffs Allege Disability and Medical Leave Discrimination
The employees filed the case anonymously and come from six states, including California and New York, as well as the District of Columbia.
They accuse Meta of violating federal and state laws that prohibit discrimination or retaliation against workers with disabilities.
The lawsuit also includes claims involving employees who took medical leave, became pregnant or temporarily stepped away from work to care for family members.
Lawsuit Questions Meta’s AI Bias Testing
The plaintiffs further allege that Meta failed to adequately test its AI-assisted systems for potential bias.
They argue that this may have violated recently introduced regulations in California and New York City governing automated employment decision systems.
These rules are designed to reduce the risk that AI tools unfairly discriminate against protected groups during hiring, promotion or termination decisions.
Internal AI Systems Allegedly Ranked Workers
According to the complaint, Meta used several internal AI-assisted systems to evaluate and rank employees for possible layoffs.
One of the tools mentioned in the lawsuit is Metamate, Meta’s internal large language model assistant.
The complaint also refers to an employee-trained system described as a “second brain,” which allegedly analyzed worker communications and company documents.
Productivity Scores Allegedly Tracked Digital Activity
The lawsuit claims that Meta also created productivity scores by monitoring workplace activity.
The alleged measurements included keyboard activity, screen content, emails, browser history and other digital behavior.
The plaintiffs argue that these systems may have misinterpreted lower activity caused by medical leave, disability accommodations or family responsibilities as weaker job performance.
Lawsuit Could Shape Future AI Employment Rules
The case may become an important test of how existing employment laws apply to artificial intelligence.
If the lawsuit proceeds, the court may need to consider whether companies can be held responsible when automated systems indirectly disadvantage workers with protected medical or personal circumstances.
The outcome could influence how major employers design, test and supervise AI tools used in workforce decisions.
