Meta Accused of Using AI to Target Disabled Workers in Layoffs Lawsuit

Twenty-six employees of Meta Platforms have filed a lawsuit accusing the technology giant of using artificial intelligence-powered systems that disproportionately targeted workers with disabilities or those who had taken medical leave during its recent mass layoffs.

The lawsuit, filed late on Monday in a federal court in Oakland, California, alleges that Meta relied on factors including productivity measures and AI-related usage data when selecting thousands of employees for redundancy earlier this year. The plaintiffs claim the process unfairly penalised workers who had missed work due to medical conditions or family caregiving responsibilities.

The employees, who were informed in May that their positions would be eliminated from July 22, are seeking a preliminary court order preventing Meta from completing the layoffs while they pursue their claims through private arbitration.

The workers said Meta’s employment agreements require individual arbitration for workplace disputes but do not prevent employees from seeking temporary legal relief from the courts.

A Meta spokesperson rejected the allegations, saying the claims had no merit.

“Workforce management and organisational decisions were and are made by people, not AI,” the spokesperson said.

The lawsuit appears to be the first legal challenge against a major US company over the alleged use of artificial intelligence in carrying out employee layoffs.

Meta cut around 10 per cent of its global workforce in May, affecting nearly 8,000 employees, and had been considering further reductions later this year, according to earlier reports. Chief executive Mark Zuckerberg has since said he does not expect additional company-wide layoffs in 2026.

The job cuts form part of a wider restructuring as Meta accelerates investment in artificial intelligence and integrates AI agents into both its products and internal operations.

The plaintiffs, who filed the case anonymously, accuse Meta of violating federal and state laws prohibiting discrimination and retaliation against workers with disabilities, employees who take medical leave, and pregnant workers. They also allege the company failed to test its AI systems for bias, potentially breaching recently introduced laws in California and New York City.

The claimants are based across six US states, including California and New York, as well as Washington, DC.

According to the complaint, Meta used several internal AI-assisted tools to evaluate and rank employees for termination. These allegedly included “Metamate”, a large language model-based assistant; an employee-built “second brain” system that tracked workplace communications and documents; and productivity scores generated by analysing keystrokes, screen activity, emails and browser history.

Meta has not admitted any wrongdoing, and the allegations have yet to be tested in court.

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.