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Job Applicants Sue Eightfold AI Over Secret Hiring Scores, Citing Credit-Reporting Laws

The case tests whether credit-reporting safeguards apply to AI hiring tools that rank applicants.

Overview

  • Two applicants filed a proposed class action in California state court, alleging Eightfold created undisclosed applicant reports and scores.
  • The complaint says the platform assigns 0–5 “Match Scores” using data from sources such as LinkedIn and job boards without required notice or a way to dispute errors under the FCRA and California law.
  • Eightfold disputes the claims, saying it does not scrape social media and relies on data shared by candidates or provided by customers, asserting legal compliance.
  • The software is used by major employers and public agencies, including companies like Microsoft and PayPal, which are not named as defendants.
  • The plaintiffs, represented by Outten & Golden and Towards Justice, seek statutory and actual damages plus injunctive relief, and the litigation remains at an early stage.