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Meta sued by 26 employees who say its AI systems targeted workers on medical leave for layoffs

Posted on July 14, 2026 By 164news66 No Comments on Meta sued by 26 employees who say its AI systems targeted workers on medical leave for layoffs

Meta Sued by 26 Employees Over AI-Driven Layoffs Targeting Medical Leave Workers

Meta faced a lawsuit from 26 current and former employees, who claim that the company’s AI systems unfairly targeted individuals on medical leave for layoffs in May.

Key Allegations:

  • The plaintiffs argue that Meta‘s AI-powered systems, including keystroke monitoring, AI token dashboards, and "Metamate," a large language model assistant, generated scores that penalized workers who had taken protected leave.
  • These systems were used to rank and select employees for termination during the company’s mass layoffs of approximately 8,000 staff on May 20.
  • The suit suggests this could be the first legal challenge against a major US tech company regarding the use of AI in layoffs.

Plaintiffs’ Claims:

  • Violations of the Americans with Disabilities Act, Family and Medical Leave Act, Pregnancy Discrimination Act, and state-level leave protections.
  • Allegations that Meta deployed a monitoring program in 2026, capturing keystrokes, screen content, browser history, messages, emails, and location data from company devices without proper consent.
  • The data was used to develop AI tools, including for a new engineering organization to which employees were reassigned.

Next Steps:

  • The plaintiffs seek a preliminary injunction to halt their terminations while individual claims are pursued in arbitration.
  • They also allege that Meta failed to test its AI systems for bias, violating recent California and New York City laws on AI use in employment decisions.
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