Meta is facing legal action from dozens of current employees who claim the company relied on artificial intelligence to identify workers for layoffs, unfairly affecting those on maternity leave, medical leave, or receiving disability accommodations.

The lawsuit, filed on Monday in the U.S. District Court for the Northern District of California, centers on Meta’s workforce reduction earlier this year, during which approximately 8,000 employees were laid off. The plaintiffs argue that the company used multiple AI-powered systems to evaluate and rank employees before deciding who would lose their jobs.

According to the complaint, Meta allegedly relied on artificial intelligence rather than direct input from managers who understood employees’ work performance. The lawsuit claims the company used AI-generated performance scores alongside data such as keystroke activity, productivity metrics, and other workplace monitoring tools to determine which employees would be included in the layoffs.

A total of 26 employees are listed as plaintiffs in the case. They are asking the court to temporarily halt the layoffs while the legal proceedings continue. They are also seeking reinstatement, unpaid wages, lost stock compensation, employment benefits, and additional damages if their claims succeed.

Concerns Over AI in Employment Decisions

The case adds to growing concerns surrounding the use of artificial intelligence in workplace decision-making. Employees, labor advocates, and regulators have increasingly questioned whether AI systems can make fair employment decisions without introducing bias or discrimination.

Several U.S. states, including California, Colorado, and Illinois, have recently introduced laws and regulations aimed at protecting workers from discrimination linked to automated decision-making and AI-based employment systems.

Claims of Discrimination Against Employees on Leave

The lawsuit argues that Meta’s AI systems relied heavily on employee performance data and productivity measurements. However, workers on approved family leave, medical leave, or disability accommodation naturally generate fewer work-related metrics during their absence.

According to the plaintiffs, this resulted in employees on legally protected leave receiving lower AI-generated evaluations, making them more likely to be selected for redundancy.

The complaint argues that the system effectively punished workers for exercising rights protected under employment law.

Individual Cases Highlighted in the Lawsuit

The filing includes several examples of employees who believe they were unfairly targeted.

One plaintiff, a research scientist, was on approved maternity leave before giving birth and received notice of her layoff only two days before her delivery.

Another employee, an engineer recovering from an injury, claims his performance rating was reduced because he had taken medically approved leave.

A third plaintiff, a manager who was already on medical leave, says he was informed of his dismissal just 16 days after beginning his leave.

Meta Rejects the Allegations

Meta has denied all claims made in the lawsuit.

A company spokesperson described the allegations as inaccurate and maintained that employment decisions were made by people rather than artificial intelligence.

According to Meta, workforce planning and layoff decisions remain under human oversight, and AI was not responsible for determining which employees were dismissed.

Employee Monitoring Program Under Scrutiny

Earlier this year, Meta introduced an AI-based employee monitoring program designed to collect information such as keyboard activity, mouse movements, browser history, emails, internal messages, and location data from company-owned devices.

CEO Mark Zuckerberg reportedly explained internally that the initiative was intended to help train Meta’s AI models by allowing them to learn from the work habits and decision-making processes of highly skilled employees.

However, the lawsuit alleges that the monitoring program was introduced without meaningful employee consultation or informed consent. According to the complaint, the announcement appeared only in a low-profile internal post rather than through formal communication from senior leadership.

The plaintiffs also claim that many employees were never asked to acknowledge or approve the monitoring system, and some teams initially had no option to opt out.

Employee Backlash

The monitoring initiative sparked significant criticism inside the company.

More than 1,600 employees signed a petition opposing the program, arguing that it violated employee privacy and created unnecessary surveillance in the workplace.

Following the growing backlash, Zuckerberg announced in June that Meta would pause the employee monitoring program while concerns were reviewed.

Plaintiffs Seek Independent AI Audit

As part of the lawsuit, the employees are requesting that the court authorize an independent examination of Meta’s AI systems.

Their legal team argues that an external audit would help determine whether the technology unfairly influenced the selection of employees who were on protected leave or receiving disability accommodations.

The lawyers also accuse Meta of keeping the details of its layoff selection process hidden from employees.

Employees Seek Temporary Protection

According to the lawsuit, the plaintiffs remain employed by Meta until 22 July, when their terminations are scheduled to take effect.

Because they fear retaliation, their attorneys have asked the court to allow them to proceed anonymously. They are also requesting an order preventing their employment from ending while arbitration and legal proceedings continue.

The legal team argues that allowing the layoffs to proceed would cause immediate and irreversible harm, including the loss of employer-sponsored healthcare during pregnancy or medical treatment, forfeited stock compensation, expired leave protections, and potential immigration consequences for affected workers.

Conclusion

The lawsuit represents one of the most significant legal challenges yet over the use of artificial intelligence in workplace management. As more companies adopt AI-driven systems for evaluating employees, the outcome of this case could influence how businesses use automated technologies in hiring, performance reviews, and future workforce reductions.