Twenty-six current and former Meta employees filed a lawsuit Monday alleging the social media giant used artificial intelligence systems to conduct layoffs in a discriminatory manner.

The workers claim Meta's "constellation of internal artificial-intelligence systems" failed to account for approved medical and family leave when selecting employees for termination during the company's May layoff round that cut 10% of its workforce.

According to the complaint filed in California's Northern District Court, the AI tools relied on performance ratings, productivity metrics, and "AI-token consumption" data that employees on protected leave could not accumulate.

"Those tools draw on inputs that, by design, cannot be accumulated by an employee who is on protected medical or family leave, or whose output is reduced by a disability," the attorneys wrote.

The lawsuit specifically targets Meta's use of AI token consumption as a metric, which has become a proxy for general AI usage within the company.

Meta denied the allegations in a statement to CNBC. "Workforce management and organizational decisions were and are made by people, not AI," a company spokesperson said.

Growing concerns over AI bias

The case highlights mounting anxiety about AI's impact on employment decisions and workers with disabilities.

The plaintiffs seek a preliminary injunction to maintain their employment status pending an independent audit of Meta's "algorithmically assisted selection process."

The lawsuit follows a June ruling against Workday, where a California federal judge allowed claims to proceed over the company's AI-powered job screening tools allegedly violating discrimination laws.

Workday denied those allegations, stating its technology "looks only at job qualifications, not protected traits like race, age, or disability."

The Meta case underscores broader questions about algorithmic decision-making in corporate workforce management as AI adoption accelerates across industries.

The 26 plaintiffs are pursuing individual arbitration claims related to violations of protected-leave laws and various discrimination acts covering pregnancies and disabilities.