AI Ethics
10/13/2025
20 min read
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Algorithmic Deactivation: How to Prove Platform Discrimination (2025)

Arshon Harper was rejected 149/150 times by Sirius XM's AI. Workday faces class action for age discrimination. Learn how to detect, document, and prove algorithmic bias in gig platforms, hiring systems, and automated decisions.

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By Compens.ai Collective Intelligence

Insurance Claims Expert

Algorithmic Deactivation: How to Prove Platform Discrimination (2025)

Updated January 2025 - Includes Arshon Harper v. Sirius XM, Workday class action, EU AI Act

The Algorithmic Discrimination Crisis

Algorithms are making life-changing decisions about your livelihood without explanation. From gig platform deactivations to job rejections, automated systems systematically discriminate against millions of workers.

Breaking Cases (2024-2025):
  • Arshon Harper v. Sirius XM: Rejected 149/150 times by AI
  • Workday Class Action: Age discrimination in hiring software
  • EEOC v. iTutorGroup: $365K settlement for age discrimination
  • UK Algorithm Disclosure Law: Must explain automated decisions
  • EU AI Act: Prohibits discriminatory AI systems
The Reality:
  • 78% of AI systems show measurable bias
  • 150,000+ Uber drivers deactivated algorithmically
  • 73% of deactivations lack clear explanation
  • You can prove it and win

What Is Algorithmic Discrimination?

Legal Definition: Automated decisions that disproportionately harm protected groups without business necessity.

Key: The algorithm doesn't need intent. Disparate impact is enough.

Common Examples

Gig Economy:
  • Acceptance rate penalties (affects disabled drivers)
  • Completion rate rules (affects low-connectivity areas)
  • Customer ratings (show racial bias in studies)
How Algorithms Discriminate:
  • Training data reflects past discrimination
  • Proxy factors (zip code = race)
  • Features disadvantaging protected groups
  • Discriminatory thresholds
  • Bias-reinforcing feedback loops

Your Legal Rights

United States

Federal:
  • Title VII: Race, gender, religion, national origin
  • ADEA: Age 40+
  • ADA: Disability accommodation
State Laws:
  • California: Data access, human review rights
  • NYC: AI bias audit law (first in nation)
  • Illinois BIPA: Biometric privacy ($1,000-$5,000 per violation)

European Union

EU AI Act (2024):
  • Prohibits discriminatory high-risk AI
  • Transparency required
  • Penalties up to €30M or 6% revenue

GDPR: Right to explanation, human review, contest decisions

Other Countries

  • UK: Algorithm disclosure law (2025)
  • Malaysia: Gig Workers Bill includes algorithm appeals
  • Australia: Fair Work Act covers algorithmic management

How to Detect Algorithmic Discrimination

Red Flags

🚩 Sudden metric drops without behavior change 🚩 Repeated rejections despite qualifications 🚩 Deactivation after personal info change 🚩 Different treatment than similar workers 🚩 No human ever reviews appeals 🚩 You're in protected class

Gathering Evidence

Step 1: Document Your Experience
  • Timeline of events
  • All metrics and screenshots
  • Communications with platform
  • Pattern analysis
Step 2: Find Patterns Across Workers
  • Survey community
  • Look for demographic clusters
  • Statistical analysis

Step 3: Request Your Data

CCPA/GDPR request:

Under [law], I request:
  • All personal data
  • Data used in automated decisions
  • Algorithm logic and parameters
  • Training data
  • Human review records

Statistical Evidence

Four-Fifths Rule: If selection rate for protected group is <80% of highest group, presumptive discrimination.

Example:
  • White drivers: 90% acceptance
  • Black drivers: 65% acceptance
  • 65% ÷ 90% = 72% (BELOW 80%)
  • Presumptive discrimination

Building Your Case

Phase 1: Exhaust Internal Appeals

  • Request specific reason
  • Ask for human review
  • Cite qualifications
  • Set deadlines
  • Document denials

Phase 2: File Government Complaints

EEOC (eeoc.gov):
  • Within 180-300 days
  • Describe algorithmic discrimination
  • Provide disparate impact evidence

State Agencies: DFEH (CA), DOL (NY), etc.

Phase 3: Legal Action

Arbitration (if required):
  • $200 filing fee
  • Platform pays arbitrator
  • 60-120 days
  • Discovery can reveal algorithm
Federal Lawsuit:
  • After EEOC right-to-sue letter
  • Claims: Title VII, ADA, ADEA, state laws
  • Expert testimony needed

Phase 4: Join/Start Class Action

Existing: Check topclassactions.com Start Your Own: Find employment attorney, survey workers

Proving Algorithm Is Biased

Legal Standards

Plaintiff Shows: Neutral practice + Disparate impact + Causation Defendant Shows: Business necessity + Job related Plaintiff Wins By: Less discriminatory alternative exists

Expert Testimony

  • Algorithm audit expert: Reviews code for bias
  • Statistical expert: Analyzes disparate impact
  • Industry expert: Shows alternatives

Discovery: Getting Platform Data

Request:
  • Source code
  • Training data
  • Decision factors and weights
  • Demographic deactivation rates

Platforms Resist: Trade secret claims You Win: Protective order + relevance argument

Real Cases You Can Cite

iTutorGroup v. EEOC: $365K for age discrimination algorithm Arshon Harper v. Sirius XM: 149/150 rejections, ongoing Workday Class Action: ATS age discrimination, certified 2025 Facebook Housing: $2.275M for ad algorithm discrimination

Platform Arguments (And Your Counters)

"Algorithm is objective" → Disparate impact doesn't require intent "Business necessity" → Less discriminatory alternatives exist "Humans reviewed" → Show instant denials prove no review "Can't prove algorithm" → Discovery compels disclosure "Would eliminate all standards" → Just discriminatory ones

Success Strategies

✅ Build coalitions with other workers ✅ Use media pressure ✅ Leverage regulation (NYC audit law, EU AI Act) ✅ Be patient but persistent ✅ Document everything

The Future: Algorithm Accountability

Coming:
  • Federal Algorithmic Accountability Act
  • More states following NYC
  • EU AI Act enforcement
  • International regulations

What You Can Do Now: ✅ Know your rights ✅ Document everything ✅ Request your data ✅ Find others affected ✅ File complaints ✅ Demand arbitration ✅ Consider lawsuit ✅ Join class action ✅ Never give up

Resources

Legal: NELA (nela.org), ACLU, Legal Aid Advocacy: Algorithmic Justice League, AI Now Institute Government: EEOC, FTC, State agencies Research: MIT, Stanford, Oxford institutes

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You can prove algorithmic discrimination. The tools exist. Document, organize, fight back.

For specific legal advice, consult an attorney familiar with algorithmic discrimination law.

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