What Is the Meta Lawsuit About?

According to court filings reported by Reuters, 26 former Meta employees allege that the company used several AI-assisted systems when evaluating employees during a workforce reduction affecting approximately 10% of Meta’s global workforce.

The lawsuit alleges that these systems considered factors such as:

  • employee productivity;
  • AI usage metrics;
  • internal communications;
  • activity monitoring; and
  • algorithmically generated performance rankings.

The employees claim that these tools failed to properly account for workers who had taken protected medical or disability-related leave, resulting in those employees being unfairly selected for termination. The plaintiffs allege discrimination based on disability, medical leave, pregnancy, and related protected grounds.

Why This Matters Beyond Meta

Whether or not the allegations are ultimately proven, this lawsuit reflects a much broader trend.

Many employers are beginning to use AI tools to assist with:

  • performance evaluations;
  • productivity monitoring;
  • workforce planning;
  • recruitment;
  • promotion decisions; and
  • restructuring and layoffs.

While AI can improve efficiency, it also creates new legal risks if automated systems unintentionally disadvantage employees who are protected under employment or human rights legislation.

One of the central legal concerns is algorithmic bias, where seemingly neutral technology produces discriminatory outcomes because of the data it relies upon or how it measures employee performance.

Could Similar Issues Arise in Ontario?

Absolutely.

Although this lawsuit arises under American law, Canadian employers are not exempt from similar legal obligations.

In Ontario, employers must comply with the:

If an AI tool disproportionately penalizes employees who require accommodation or who have been absent due to disability-related leave, an employer may still face legal liability, even if the discriminatory outcome was unintended.

One important lesson from the Meta litigation is that technology does not eliminate an employer’s legal obligations.

Employers remain responsible for ensuring that workplace decisions are:

  • fair;
  • non-discriminatory;
  • reasonably supported by evidence; and
  • compliant with applicable employment and human rights laws.

Simply because an algorithm recommends a decision does not necessarily make that decision legally defensible.

As AI becomes increasingly sophisticated, employers should carefully review how these systems are being implemented and whether appropriate safeguards exist to prevent biased outcomes.

What Should Ontario Employers Be Doing?

Businesses considering AI-assisted employment decisions, should consider:

  • auditing AI tools for potential bias;
  • ensuring human oversight over significant employment decisions;
  • documenting how termination decisions are made;
  • reviewing accommodation obligations before restructuring;
  • consulting employment counsel before implementing AI-driven workforce management systems;
  • reviewing employment standards rules and disclosure requirements when using AI in the workplace

Taking proactive steps today may reduce the risk of costly litigation tomorrow.

What Should Employees Know?

Employees should remember that being selected during a restructuring does not automatically mean the termination was lawful.

Where an employee believes they were selected because of:

  • a disability;
  • medical leave;
  • pregnancy;
  • family obligations;
  • another protected ground; or
  • potentially flawed automated decision-making,

they should obtain legal advice before signing any termination documents or release.

Each situation depends on its own facts, and legal rights can vary significantly.

How Pelsmakher Law Can Help

At Pelsmakher Law, we closely monitor developments involving workplace technology, artificial intelligence, wrongful dismissal, and human rights law.

If you have been terminated following a restructuring, mass layoff, or workplace reorganization, or if you believe discrimination played a role in your dismissal, obtaining legal advice early can make a significant difference.

Our firm regularly advises employees and employers throughout Canada on:

  • wrongful dismissal claims;
  • human rights issues;
  • severance package reviews;
  • workplace accommodations;
  • disability-related employment disputes; and
  • employer obligations during layoffs and restructuring.

To learn more about your workplace rights, you may also find these resources helpful:

Frequently Asked Questions

Can an employer use AI to decide who gets laid off?

Potentially, yes. However, employers remain legally responsible for ensuring that employment decisions comply with applicable employment and human rights legislation. AI should not produce discriminatory outcomes.

Can AI discriminate against employees?

AI itself is not capable of intent, but the data, assumptions, or metrics used by AI systems may produce biased results that disproportionately affect protected groups.

Does Ontario have laws regulating AI in employment?

Ontario does not currently have legislation specifically regulating workplace AI in the same manner as some other jurisdictions. However, employers remain subject to existing employment, human rights, privacy, and common law obligations regardless of whether decisions are made by humans or AI.

I was terminated after returning from medical leave. Should I speak to a lawyer?

Yes, employees who believe a disability, medical leave, or other protected ground influenced a termination should seek legal advice before accepting a severance package or signing a release. Discrimination in the workplace remains prohibited, regardless of whether AI is used.