A group of 26 former Meta employees has accused the company of using a layoff selection process that may have treated legally protected leave as evidence of weak performance. The lawsuit centers on workers who took medical, parental, family, pregnancy-related, or disability-related leave.
The plaintiffs argue that their lawful absences could be recorded as reduced activity and lower productivity in the company’s evaluation process. They are seeking to pause their terminations while the dispute proceeds through individual arbitration.
Concerns over performance data
According to the lawsuit, Meta allegedly relied on several data sources to assist its workforce selection process. Those sources included internal AI systems, keystroke monitoring, work activity records, AI token-use dashboards, and algorithm-assisted performance reviews.
The former employees do not object solely to the use of technology in workplace evaluations. They contend that Meta did not adequately test the systems for possible bias against employees on protected leave or those requiring disability accommodations.
The complaint says the performance indicators were inherently difficult to meet for workers who were absent on medical or family leave. It also alleges that Meta did not account fairly for leave status when calculating performance scores.
The plaintiffs further claim that the company did not suspend the evaluation system to conduct neutral, individual reviews of leave status and accommodation needs. Their allegation is that an algorithm-assisted process systematically interpreted leave-related absences as a drop in performance.
| Plaintiff Group | Number | Leave Mentioned |
|---|---|---|
| Women | 8 | Maternity or pregnancy-related leave |
| Men | 4 | Parental leave |
| Woman | 1 | Family caregiving leave, then bereavement leave |
The complaint says the alleged pattern could have a greater impact on women, particularly employees who took leave related to pregnancy or family care. About half of the plaintiffs reportedly took leave for childcare or pregnancy.
Meta rejects claim that AI made the decisions
Meta denied the allegations and said AI was not used to determine which employees would lose their jobs. A company spokesperson told Fox Business that workforce management and organizational decisions were made by people, not AI.
The company described the claims as unfounded and inconsistent with the facts. The plaintiffs, however, argue that the issue includes whether automated evaluation tools were sufficiently checked for leave-related bias.
Part of a wider workforce reduction
The 26 former employees were part of roughly 8,000 Meta workers affected by layoffs announced in May, representing about 10 percent of the company’s workforce. They were informed that their employment would end beginning July 22.
The lawsuit was filed in federal court in Oakland, California, on Monday local time. The plaintiffs are from six U.S. states, including California and New York, as well as Washington, D.C.
The complaint cites alleged violations of the Family and Medical Leave Act, the Americans with Disabilities Act, the Pregnancy Discrimination Act, and the Pregnant Workers Fairness Act. It also raises concerns about newer California and New York City requirements involving bias testing for AI systems.
The former employees say a temporary halt is necessary because losing subsidized health insurance could create immediate harm for workers who are pregnant, recovering after childbirth, or receiving medical treatment. The case places fresh scrutiny on how workplace data and automated tools are used during large-scale layoffs.