Mobley v. Workday, Inc.
A case out of the Northern District of California is drawing attention as one of the first in which AI-driven screening tools for job applicants are facing scrutiny under federal discrimination laws. The plaintiff in Mobley v. Workday, Inc. alleged that Workday’s screening tool disproportionately rejects applicants who are Black, older, or disabled in violation Title VII of the Civil Rights Act, the Americans with Disabilities Act (“ADA”), and the Age Discrimination in Employment (“ADEA”). The case was allowed to proceed in 2024 and, more recently, was allowed to expand nationwide as a class action on behalf of millions of plaintiffs who were not hired by employers utilizing Workday’s screening tool.
In January 2026, the Court allowed the plaintiff to file a Second Amended Complaint and add additional class representatives. As one of the first federal tests of AI-driven tools impacting employment decisions, Mobley’s development is being watched closely.
The Colorado AI Act
On June 30, 2026, the Colorado AI Act will require entities doing business in Colorado and that rely on “high risk” AI tools to take certain actions. A “high risk” AI system is one that makes or influences significant employment decision, like hiring, firing, or promotions, including systems like automated hiring tools or resume screening tools.
Such entities must, beginning in June, evaluate their AI systems to identify and mitigate potential harm, inform candidates and employees when AI is impacting such decisions, and proactively take steps to avoid algorithmic discrimination.
NLRB Revives Former Standard for Joint Employer
On February 26, 2026, the NLRB voted to reinstate a previous rule (originally implemented under the first Trump Administration) regarding joint employers subject to the NLRA. The rule conditions a company’s qualification as a joint employer on whether it may exercise control over working conditions, such as supervision, pay, hiring, and firing. If a company qualifies as a joint employer, it must comply with federal laws requiring it to engage in collective bargaining and not interfere with union organizing.
Labor unions had historically pushed for a more labor-friendly rule subjecting larger companies that maintain ownership over smaller franchises to the federal labor laws. Under the Obama and Biden administrations, the NLRA adopted a rule defining a joint employer as any company that indirectly impacts working conditions. In 2020, the NLRB revised the rule to its current form, requiring a company to maintain direct and immediate control over working conditions.
The rule is widely viewed as less friendly to employees by removing their bargaining power with parent companies who own franchises or operate with staffing firms or independent contractors.
Workplace Safety Advancements in Colorado
As the federal employment landscape shifts under the Trump administration, Colorado lawmakers have pushed forward HB26-1054 in an effort to codify certain workplace safety standards in the event that such federal protections are rescinded. The bill requires employers to ensure their workplaces are free from “recognized hazards” and allows the Colorado Attorney General, Division of Labor Standards and Statistics, a labor organization, or a harmed person to sue for violating that requirement. Advocates for the new law point to 92 workplace fatalities for Colorado workers in 2024 alone, as recorded by the U.S. Bureau of Labor and Statistics. Opponents have expressed concern that the bill could result in an onslaught of litigation that would increase employers’ liability risk and defense costs. HB26-1054 had its first hearing before the Colorado House Business Affairs & Labor Committee on February 26, 2026. The Committee has not yet voted on the bill. If it clears the Committee, it will head to the full House and then the Senate.
Sources:
https://www.reuters.com/legal/government/nlrb-resurrects-rule-trumps-first-term-limiting-joint-employment-2026-02-26/
https://hoodline.com/2026/02/colorado-lawmakers-push-worksite-crackdown-as-feds-ease-off/
https://trackbill.com/bill/colorado-house-bill-1054-protections-for-worker-safety/2778989/