News

  • The HR World Watches Closely as Workday Lawsuit Challenges AI Hiring Discrimination

    The lawsuit against Workday challenging the potential discriminatory outputs of artificial intelligence-based hiring programs could be a defining moment for the U.S. legal system. The first named plaintiff alleged being rejected from over 100 positions due to Workday’s recruitment screening tools, leading to claims of age discrimination and violations of civil rights acts. Despite Workday’s arguments, the court ruled in favor of preliminary certification for a nationwide collective action on the age discrimination claim.

    Workday has denied the plaintiffs’ allegations, stating that their AI recruiting tools are not trained to use or identify protected characteristics. The ongoing lawsuit raises questions about discrimination in AI hiring systems, with multiple states enacting laws to address the issue. Another lawsuit in California against Eightfold AI Inc. sheds light on the challenges of AI-based recruitment, as the company allegedly collected personal information from unverified sources to rank candidates without their consent.

  • Trump Administration Aims to Further Decrease Federal Workforce

    During a conference in Washington, OMB Deputy Director for Management Eric Ueland discussed the administration’s commitment to reducing the size of the federal government, citing a goal of tackling waste, fraud, and abuse. He emphasized clear communication with employees about future reorganization plans, even if it may result in changes that they disagree with. OPM Director Scott Kupor also highlighted the need for agencies to find ways to increase their portfolios without adding staff, suggesting that artificial intelligence could help achieve this goal.

    Furthermore, Ueland acknowledged the disruption federal workers will face through ongoing reorganizations, including the conversion of civil servants into at-will employees. Despite the challenges, he encouraged employees to view this shift as an opportunity for empowerment and to consider the possibilities that come with a more streamlined system. Kupor stressed the importance of attracting new talent to the government, focusing on early career recruitment and promoting the government as an attractive employer.

  • Honda Settles Wage and Hour Lawsuit Over Timekeeping Software Outage

    Honda has agreed to pay $2.3 million to settle claims that it violated wage and hour laws while its timekeeping software was offline due to a ransomware attack that affected employers across the country. The allegations included failing to accurately track workers’ hours and resulting in Fair Labor Standards Act overtime violations.

    The proposed settlement, which still needs court approval, covers multiple lawsuits and potentially thousands of employees. The agreement came after difficult negotiations, with both sides opting to settle to avoid the risk and expense of taking the claims to trial. Honda stated that they remain committed to ensuring their associates are paid accurately and on time, and are pleased to put the matter behind them.

  • Novo Nordisk and Hims & Hers Reach Agreement on Weight Loss Medicine Sales

    In a surprising turn of events, Novo Nordisk has dropped its patent infringement lawsuit against Hims & Hers after the two companies reached an agreement. The deal will now allow Novo Nordisk’s branded weight loss medicines to be sold through the Hims platform, putting an end to the dispute over off-brand versions of the medication.

    The FDA’s announcement that GLP-1 drugs were no longer in shortage in 2024 has led to changes in the market, prompting companies like Hims to adjust their strategies. As part of the agreement, Hims will offer both oral and injectable versions of Wegovy and Ozempic on its platform, while also ceasing the advertising of compounded GLP-1 drugs. Despite this development, Novo Nordisk has reserved the right to refile its lawsuit in the future, signaling that the situation may not be fully resolved.

  • Exploring New Frontiers: Zoox Maps Streets of Dallas and Phoenix for Autonomous Vehicle Testing

    Zoox, an Amazon-owned autonomous vehicle company, is expanding its testing operations to Dallas, Texas, and Phoenix, Arizona. The company has deployed Toyota Highlander SUVs to these cities to collect data and familiarize its self-driving software with the unique characteristics of these new markets. Zoox aims to eventually launch its purpose-built robotaxis in these areas, creating hundreds of new jobs and offering a futuristic transportation option to residents. While awaiting federal approvals and local agency permissions for commercial operation, Zoox remains at the forefront of the autonomous vehicle industry with its innovative approach to urban mobility.

  • Investment Firms of Ultra-Wealthy Families Remain Bullish on AI Startups

    Despite fears of an artificial intelligence bubble causing turmoil in the stock market, investment firms affiliated with ultra-wealthy families continue to make bullish bets on high-flying AI startups. In February, family offices made 41 direct investments in companies, with nearly all associated with AI technology. Notable investments include Laurene Powell Jobs’ Emerson Collective joining a $1 billion fundraise for AI developer World Labs and Azim Premji’s family office participating in a $315 million Series E round for Runway, an AI video generation startup. Overall, AI-related startups raised a record $171 billion in February, with notable rounds by Anthropic, OpenAI, and Waymo. Hillspire, the firm of ex-Google CEO Eric Schmidt and his wife, Wendy, also invested in a startup aimed at improving AI models and understanding their workings. Despite concerns about a bubble, industry experts remain optimistic about the long-term economic potential of AI investments.

  • Consumer Backlash: ChatGPT Uninstalls Surge After DoD Deal

    U.S. app uninstalls for ChatGPT’s mobile app saw a staggering 295% increase in just one day following the news of OpenAI’s partnership with the Department of Defense, now known as the Department of War under the Trump administration. In contrast, downloads for OpenAI competitor Anthropic’s Claude spiked by 37% on Friday and 51% on Saturday after the announcement that they would not be partnering with the defense department due to ethical concerns about AI usage.

    Consumers’ reactions were clear in the data, with ChatGPT witnessing a decline in downloads and an increase in 1-star reviews, while Claude rose to the No. 1 spot on the U.S. App Store. Third-party data providers affirmed these trends, with Appfigures reporting Claude surpassing ChatGPT in U.S. downloads and Similarweb noting a significant increase in Claude’s downloads over the past week. The consumer response highlights the growing importance of ethical considerations in the AI industry.