Twenty-six current employees of Meta have filed a lawsuit accusing the company of relying on AI tools during its latest round of job cuts in a way that unfairly affected workers on protected leave.
The case argues that staff taking family, medical, and parental leave were more likely to be selected for layoffs because of how the company’s evaluation systems measured performance.
The plaintiffs are among 8,000 workers, representing roughly 10% of Meta’s workforce, whose positions were eliminated as part of layoffs announced in May. According to the complaint, the company used several digital systems when assessing employees, including AI-supported performance rankings, workplace activity tracking, keyboard usage records, and dashboards monitoring AI-related productivity.
The lawsuit contends the systems placed employees on protected leave at a disadvantage because they naturally generated lower activity and productivity scores during approved absences. Although all 26 employees have received notice that their jobs are being eliminated, they remain on the payroll, with departures expected to begin on July 22.
The filing states that several employees were on maternity or parental leave, while others were recovering from medical conditions. One employee, who reportedly received approval for leave related to a serious health condition through Meta’s medical provider, claims a manager warned that taking time off would increase the likelihood of being included in the layoffs. The lawsuit also alleges the company did not provide reasonable accommodations for the worker’s disability.
Meta rejected the allegations, saying the claims have no factual basis. In a statement, the company maintained that organizational and staffing decisions are made by managers rather than AI.
Roughly half of the plaintiffs took leave connected to pregnancy or caregiving. The group includes eight women who used pregnancy or maternity-related leave, four fathers who took parental leave, and another woman who took family caregiving leave followed by bereavement leave.
The lawsuit alleges violations of several federal and state employment laws, including the Americans with Disabilities Act, the Family and Medical Leave Act, the Pregnant Workers Fairness Act, and the Pregnancy Discrimination Act. It also relies on the legal principle of disparate impact, which allows challenges to workplace policies that appear neutral but disproportionately affect protected groups.
Although the Trump administration has reduced federal enforcement of disparate impact claims, private lawsuits remain available, and several states continue to recognize such protections.
Lawyers representing the employees argue that Meta’s AI-assisted evaluation process placed a heavier burden on women because they are more likely to take pregnancy and caregiving leave. They are asking the court to preserve the workers’ employment while arbitration proceeds, arguing that permanent separations could result in lost health insurance, reduced leave protections, forfeited stock benefits, and immigration-related consequences.
As this lawsuit is heard by the court, the tech industry, including firms like Datavault AI Inc. (NASDAQ: DVLT), will be following the proceedings in order to analyze any possible ramifications that could reshape corporate decisions on downsizing their workforce.
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