Breaking News | Meta Sued Over AI-Assisted Layoffs That Allegedly Targeted Medical Leave

A federal lawsuit in Oakland, California alleges Meta used AI-powered productivity metrics - including internal systems like Metamate, keystroke monitoring, and AI token-usage dashboards - to select workers for its 10% workforce reduction announced in May (approximately 8,000 employees). The 26 plaintiffs, from six states, claim the algorithms failed to account for legally protected medical, disability, parental, or family leave, effectively penalizing workers who stepped away from work. The complaint cites violations of the Americans with Disabilities Act, Family and Medical Leave Act, Pregnancy Discrimination Act, and several state laws. One employee was allegedly warned by a manager that taking approved medical leave would result in his termination. Eight of the plaintiffs are women who took maternity or pregnancy-related leave; four are men who took parental leave. The lawsuit references disparate impact liability under Title VII, arguing facially neutral AI systems disproportionately harmed women, who take caregiving leave more often than men. Plaintiffs seek a court order blocking Meta from finalizing layoffs on July 22 while the case proceeds to arbitration. Meta denied the allegations, stating workforce decisions 'were and are made by people, not AI.'

• July 22: Scheduled separation date for the 26 plaintiffs; court may issue an injunction before then.

• Arbitration timeline: If plaintiffs proceed, discovery could reveal internal AI documentation and performance data, setting precedent for AI-assisted workforce management.

• EEOC response: Whether federal regulators investigate despite the Trump administration's order to deprioritize disparate impact enforcement.

• Class expansion: Other Meta employees or tech workers could file similar claims if the case advances.