A lawsuit filed by 26 former Meta employees alleges the company used internal artificial-intelligence systems to select workers for layoffs, with the process allegedly targeting individuals on protected medical or family leaves and those with disabilities. The complaint, filed in US District Court for the Northern District of California, claims Meta's AI tools scored and ranked employees based on their use of the company's AI systems, including metrics like 'AI-native' ratings and AI-token consumption. The lawsuit argues these tools failed to account for protected leaves or disabilities, leading to unfair layoff decisions. The case is described as the first against a major US company to challenge the use of AI in conducting layoffs. Source: arstechnica

The lawsuit claims Meta’s internal AI systems, including a tool referred to internally as 'Metamate' and employee-trained 'second-brain' agents, were used to score and rank employees for layoffs. According to the complaint, these systems monitored keystroke and activity data, and used AI-token-usage dashboards to assess productivity and output. The plaintiffs argue that the AI tools did not adjust for differences caused by protected leaves or disabilities, resulting in a system that penalized employees for exercising their legal rights. The complaint also states that Meta did not neutralize inputs related to protected leave or accommodations, and did not pause the system for individualized reviews required by law. Source: arstechnica

The lawsuit alleges that Meta’s layoff decisions violated several US and state laws, including the Family and Medical Leave Act, the Pregnancy Discrimination Act, the Americans with Disabilities Act, and the Pregnant Workers Fairness Act. The plaintiffs, who work in multiple states, claim that the company’s AI systems disproportionately affected employees who took protected leaves or requested accommodations for disabilities. One plaintiff was reportedly selected for termination the day before her water broke, just two days before giving birth. The lawsuit seeks an injunction to preserve employment and an independent audit of the layoff-selection process, arguing that the AI tools used inputs that failed to account for protected leave or disability. Source: [arstechnica](https://arstechnica.com/tech-policy/2026/07/lawsuit-claims-metas-lay- off-decisions-were-made-by-ai-not-humans/)