Eightfold AI faces a class action lawsuit in California state court. The venture capital-backed company provides AI hiring tools to Microsoft, PayPal, and other Fortune 500 firms. Job applicants claim the platform scores candidates without their knowledge and violates federal law.
What the Lawsuit Claims
According to Reuters, plaintiffs Erin Kistler and Sruti Bhaumik filed the suit on Tuesday. They accuse Eightfold of breaking the Fair Credit Reporting Act. The law requires companies to notify people when third parties assess them for jobs.
The lawsuit says Eightfold creates profiles that include personality tags like „team player“ and „introvert.“ The system ranks education quality and predicts future job titles. Candidates who apply at companies using these tools get no notice and cannot dispute errors.
Kistler applied to roles at PayPal and other firms. Bhaumik applied at Microsoft and similar companies. Both hold science or technology degrees and have more than 10 years of experience. Neither was hired. They believe Eightfold’s tools played a role in the rejections.
Legal Arguments
The plaintiffs also cite a California law. That law gives consumers rights to view and challenge credit reports used in hiring. „There is no AI-exemption to these laws,“ the lawsuit states. Consumer advocates want existing rules applied to AI systems that draw conclusions from large data sets.
Company Background and Response
Santa Clara-based Eightfold promises to speed up hiring by assessing applicants. The platform uses data from online resumes and job listings. It predicts whether candidates fit specific roles. SoftBank Vision Fund and General Catalyst back the company.
An Eightfold spokesperson did not reply to requests for comment. Microsoft declined to comment. PayPal did not respond. Neither company is a defendant in the case.
One-third of Eightfold customers are Fortune 500 companies. Salesforce and Bayer use the platform. The New York State Department of Labor and Colorado Department of Labor and Employment also offer Eightfold-powered tools. Labor law firm Outten & Golden and nonprofit Towards Justice represent the proposed class.
