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US judge won't block Meta from laying off workers who filed AI discrimination lawsuit

The lawsuit says Meta’s productivity metrics penalized workers on protected leave and seeks to halt 8,000 layoffs scheduled for July 22.

  • Twenty-Six Meta Platforms employees filed a federal lawsuit in Oakland, California, alleging the company used AI-powered tools to target workers on medical, parental, and disability leave for layoffs.
  • According to the complaint, Meta assembled a "constellation of internal artificial-intelligence systems," including "Metamate," which penalized employees for failing to generate "AI-token" usage during legally protected leave.
  • On Friday, U.S. District Judge William Orrick rejected the bid to block layoffs, ruling workers failed to demonstrate the "irreparable harm" required for an emergency court order.
  • Meta denies the allegations, asserting "workforce decisions were and are made by people, not AI," with job cuts scheduled to finalize on July 22.
  • The case invokes the ADA, FMLA, and state AI bias regulations, potentially setting precedent for how companies like Oracle and Coinbase handle automated workforce decisions.
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Reuters broke the news in London, United Kingdom on Friday, July 17, 2026.
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