Meta Accused of Using AI to Target Employees With Medical Conditions in Layoff Decisions
Meta is facing a major legal battle after 26 current and former employees accused the company of using artificial intelligence tools that unfairly targeted workers with disabilities, medical conditions, or those who took approved medical leave during its latest round of layoffs.
The lawsuit, filed in a federal court in Oakland, California, argues that Meta’s AI-assisted employee evaluation systems created a discriminatory process that placed vulnerable workers at a greater risk of losing their jobs.
The case could become one of the first major legal challenges in the United States focused on the use of AI in corporate layoff decisions.
Lawsuit Claims Meta’s AI-Based Layoff System Was Discriminatory
According to the lawsuit, Meta relied on multiple AI-powered workplace tools when deciding which employees would be included in company-wide job cuts announced earlier this year.
The plaintiffs allege that the systems evaluated workers using factors such as:
- Productivity scores
- AI token usage
- Internal communication activity
- Workplace engagement metrics
The employees argue these measurements unfairly penalized workers who temporarily reduced their activity because they were:
- Living with disabilities
- Recovering from illnesses
- Taking approved medical leave
- Caring for family members
- Pregnant
They claim the automated evaluation process failed to properly account for legally protected absences.
Workers Seek Court Order Before Layoffs Begin
The 26 employees were informed in May that their positions would be eliminated beginning July 22, 2026.
Rather than immediately pursuing individual arbitration, the workers are asking the federal court to issue a preliminary injunction preventing Meta from completing the layoffs until the legal dispute is resolved.
Although Meta requires employees to resolve most workplace disputes through private arbitration, the plaintiffs argue that requests for emergency court relief are not covered under those agreements.
If granted, the injunction could temporarily halt the planned layoffs affecting the workers involved in the lawsuit.
Meta Denies AI Made Layoff Decisions
Meta rejected the allegations shortly after the lawsuit became public.
A company spokesperson said the claims have no legal basis and insisted that artificial intelligence was not responsible for deciding who lost their jobs.
According to the spokesperson:
“Workforce management and organizational decisions were and are made by people, not AI.”
The company has not provided additional details regarding how AI tools were used during the evaluation process.
Internal AI Tools Named in the Complaint
The lawsuit identifies several internal systems that employees claim played a role in ranking workers before layoffs.
According to the complaint, Meta allegedly used AI-assisted technologies including:
| AI Tool | Alleged Purpose |
|---|---|
| Metamate | Large language model assistant used internally |
| Second Brain | Employee-trained knowledge system tracking communications and work documents |
| Productivity Scoring System | Measured employee performance using activity data such as keystrokes, emails, browser history, screen content and other workplace metrics |
The plaintiffs argue these tools collectively generated rankings that influenced termination decisions.
Employees Say Monitoring Went Beyond Traditional Performance Reviews
One of the more controversial claims involves the productivity scoring system.
According to the lawsuit, the system allegedly evaluated workers by analyzing digital workplace activity, including:
- Keyboard activity
- Screen content
- Emails
- Browser history
- Internal communications
- Documents employees worked on
The plaintiffs claim these automated measurements failed to distinguish between reduced activity caused by legitimate medical leave and poor workplace performance.
Alleged Violations of Federal and State Employment Laws
The anonymous plaintiffs accuse Meta of violating multiple employment protection laws.
Among the allegations are claims that the company discriminated against workers based on:
- Disability status
- Medical leave
- Pregnancy
- Family caregiving responsibilities
The lawsuit also alleges Meta failed to properly test its AI systems for discriminatory bias, which the plaintiffs argue violates newer AI-related regulations adopted in California and New York City.
The employees filing the case come from six U.S. states, including California and New York, as well as the District of Columbia.
Meta’s Workforce Restructuring Continues
The lawsuit comes during a period of major restructuring at Meta.
Earlier this year, the company cut approximately 10% of its global workforce, affecting nearly 8,000 employees, as part of a broader effort to streamline operations and increase investments in artificial intelligence.
CEO Mark Zuckerberg has previously stated that he does not expect additional company-wide layoffs later this year.
Meta has increasingly shifted its business strategy toward AI development, integrating AI agents into both consumer products and internal workplace operations.
Why This Case Could Shape AI Use in Future Layoffs
Legal experts are closely watching the lawsuit because it raises new questions about how employers use AI to evaluate workers.
If the plaintiffs succeed, the case could establish important legal standards requiring companies to:
- Audit AI systems for bias before using them in employment decisions.
- Ensure employees on protected medical leave are not unfairly disadvantaged.
- Increase transparency around AI-assisted performance evaluations.
- Limit automated decision-making in workforce reductions.
