Meta is facing fresh legal scrutiny over its growing use of artificial intelligence in the workplace. A group of 26 current and former employees claims the company relied on AI-driven performance tools that unfairly targeted workers on medical, parental and family leave during its latest wave of layoffs.
Twenty-six current and former Meta employees have filed a federal lawsuit accusing the company of using biased AI-powered systems to help decide who would lose their jobs during its latest round of layoffs. The lawsuit was filed in a federal court in Oakland, California, and challenges the company’s workforce reduction announced in May.
The plaintiffs claim Meta laid off about 8,000 employees, or roughly 10% of its workforce, as part of a broader restructuring effort. They argue that the company relied on AI-assisted performance rankings that disproportionately affected workers who had taken legally protected leave, including maternity, parental, family and medical leave.
According to the complaint, Meta used several internal AI tools to evaluate employees. The lawsuit references systems including Metamate, AI-powered performance dashboards, employee-built AI agents and internal metrics such as AI token usage. The plaintiffs allege these systems measured productivity without properly accounting for time spent on protected leave, resulting in lower rankings for affected workers.
The employees argue that this approach effectively punished them for exercising legal rights. They claim the company’s evaluation process violated federal and state employment laws, including protections covering pregnancy, disability, family leave and medical leave. Several plaintiffs also allege that Meta failed to provide reasonable accommodations required under U.S. law.
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Meta has strongly denied the allegations. A company spokesperson said workforce decisions were made by human managers, not artificial intelligence, and described the claims as lacking factual merit. The company insists that AI tools did not make final employment decisions.
The lawsuit comes as technology companies continue expanding the use of AI in internal operations. Many firms now use artificial intelligence to analyse productivity, recommend promotions, monitor workflows and support performance reviews. While supporters argue these tools improve efficiency, critics warn they can amplify hidden biases if they rely on incomplete or misleading data.
Legal experts say the case could become a landmark dispute. If the court finds that AI-assisted systems indirectly discriminated against employees on protected leave, the ruling could influence how companies use artificial intelligence in hiring, promotions and layoffs across the United States.
The plaintiffs are asking the court to halt their terminations while the case proceeds. Some say they risk losing healthcare benefits, stock compensation and, for visa holders, the legal right to remain in the United States if the layoffs move forward.
Artificial intelligence is transforming how companies make decisions. But as businesses place more trust in algorithms, questions about fairness, accountability and transparency are becoming harder to ignore.
The Meta lawsuit highlights a growing reality. Building smarter AI is only part of the challenge. Ensuring those systems treat people fairly may prove to be the bigger test.
About the Author
Marcel Chidozie is a tech analyst and writer covering foreign news, fintech, and emerging technologies at TechRegard. Based in Nigeria, He's passionate about translating complex tech developments into compelling, accessible stories for diverse audiences. His work focuses on how technology shapes innovation across Africa and globally.
