Meta faces lawsuit alleging AI-driven discrimination in May 2026 layoffs

Twenty-six former Meta employees have initiated legal proceedings in the US District Court for the Northern District of California, alleging that the social media giant utilised artificial intelligence systems to identify staff for termination during a workforce reduction announced in May 2026. The complaint contends that AI scoring mechanisms, including an internal tool referred to as 'Metamate', disproportionately selected employees on protected medical or family leave and those with disabilities, allegedly violating the Americans with Disabilities Act, the Family and Medical Leave Act, and California’s Fair Employment and Housing Act.

The lawsuit identifies specific internal AI tools used in the selection process, including 'Metamate', employee-trained 'second-brain' agents, keystroke-monitoring data, AI-token-usage dashboards, and algorithmically assisted performance ranking systems. Employees were allegedly graded on their adoption of AI tools, with internal dashboards classifying staff into categories such as 'AI Native', 'AI First', and 'AI Enabled'. The plaintiffs argue that these metrics failed to account for the reduced output associated with protected leaves or disabilities, effectively penalising workers for exercising their legal rights.

Meta has denied the allegations, stating in a statement to Ars Technica that workforce management and organisational decisions were made by humans, not AI. The company asserted that the claims lack merit and are not based on facts. Despite the denial, the plaintiffs are seeking a preliminary injunction to halt their terminations, which are scheduled to commence on July 22, 2026, and an independent audit of the selection process to examine the inputs and weights used in the algorithmic decision-making.

The complaint highlights specific instances where employees were selected for termination while on leave, including a scientist chosen while on approved pre-birth pregnancy leave and others on maternity, paternity, or medical leave for disabilities. The layoffs affect approximately 10 per cent of employees, as announced by Chief People Officer Janelle Gale in May 2026, a period during which Meta reported record revenue and committed to significant capital expenditure on artificial intelligence infrastructure.

Although there are 26 plaintiffs, the lawsuit is not a class action due to an arbitration agreement in Meta’s employment contracts. The plaintiffs are seeking a court order to preserve their employment status and data related to the algorithmically assisted selection process pending individual arbitration. They argue that the use of automated-decision systems produced disparate-impact discrimination on the basis of disability and sex, including pregnancy, in violation of updated California laws.