Meta Sued Over AI-Driven Layoffs Affecting Employees on Leave

The CSR Journal Magazine

A group of 26 employees has filed a lawsuit against Meta in the United States, alleging that the company’s use of artificial intelligence in decision-making processes resulted in disproportionate layoffs affecting those on medical, parental, or family leave. The employees contend that this method unfairly factored in reduced work output during their legally protected leaves.

The lawsuit, submitted in federal court in Oakland, California, challenges the job cuts which were announced by Meta in May, involving the elimination of about 8,000 positions—approximately 10 per cent of the company’s overall workforce. The plaintiffs assert that the layoffs violated multiple laws including the Family and Medical Leave Act and the Americans with Disabilities Act.

The employees seeking redress claim they were not given appropriate consideration for their protected leave status in the layoff process. Allegedly, Meta’s internal AI systems used various metrics, including activity tracking and performance rankings, to determine which employees would be laid off. This allegedly led to inconsistencies, as those on protected leave had difficulty accruing the performance metrics used against them.

Allegations of Discrimination in Layoff Procedures

According to the lawsuit, the metrics employed by Meta’s systems were inherently biased against employees who were unable to perform standard duties during their leave. The lawsuit alleges that Meta did not take adequate measures to ensure that the layoff decisions complied with legal standards requiring fair evaluation based on individual circumstances.

The employees allege that they were informed of their impending layoffs while still being actively employed at Meta, with separations set to commence on July 22. Among the plaintiffs, a significant proportion have stated that their leaves were due to pregnancy or caregiving responsibilities, during which their output would necessarily be lower than usual. One plaintiff specifically reported being discouraged from taking necessary leave due to comments from management regarding the impact on anticipated layoffs.

Furthermore, the lawsuit claims no reasonable accommodation was offered for disabilities, contravening the legal provisions designed to protect such employees. About half of the employees who have launched the suit are reportedly women who utilised maternity leave or parental leave, while some men have claimed rights under parental leave guidelines.

Legal Implications and Broader Context

The lawsuit raises critical questions about compliance with federal and state laws aimed at protecting workers on leave. The plaintiffs’ legal team contends that the algorithm-driven selection process employed by Meta is systematically unfair, as it places a disproportionate burden on women, who are more likely to take leave for pregnancy or caregiving roles.

Despite claims from Meta of adherence to legal standards and that decisions were made by personnel rather than automated systems, the legal arguments put forth in the lawsuit highlight the potential for discrimination. The complaint also references recent governmental policy changes under the previous administration that may have hampered the enforcement of protections related to disparate impacts on certain employee groups.

The plaintiffs aim not only to contest their termination but also seek to maintain their current employment while the legal proceedings unfold. They assert that finalising the layoffs would lead to significant and irreversible impacts, including loss of health benefits and other rights associated with their current employment status.

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