US Judge Rejects Meta Workers' Bid to Block AI Discrimination Layoffs

A U.S. judge has denied a request by 26 Meta Platforms employees to halt their impending layoffs while they pursue a lawsuit alleging discrimination by the company's AI-powered tools. The employees claim they were targeted for job cuts because of disabilities or medical leave.

U.S. District Judge William Orrick stated in a written order that he would not prevent Meta from proceeding with layoffs scheduled to begin July 22. The judge found that the workers failed to demonstrate that losing their jobs would cause "irreparable harm," a necessary condition for issuing an emergency order to block the layoffs. The core of the workers' claims will be decided in private arbitration.

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There's no do-over for bonding with a new baby or giving birth or having active medical treatment.

Meta, which has denied any wrongdoing, maintains that human employees made the decisions regarding the layoffs. The company notified nearly 8,000 employees, about 10% of its global workforce, about job cuts in May as it increases investment in artificial intelligence. The lawsuit, filed recently, contends that Meta utilized AI tools measuring productivity and AI token usage to select jobs for elimination, consequently disadvantaging individuals who had taken time off for medical reasons or to care for family members.

Plaintiffs' lawyers argued that their clients would lose not only jobs and salaries but also valuable stock options and health insurance, potentially jeopardizing medical care for conditions like pregnancies. However, Meta's legal team countered that the workers would only lose employer-subsidized insurance, not their coverage entirely, and that such damages could be recouped later if the plaintiffs prevail in arbitration. This case is reportedly the first of its kind challenging the use of AI in corporate layoffs.

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Those are the typical kinds of damages that can be recouped later on if the plaintiffs win their cases in arbitration.