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Scale AI trust on an army of workers it categorizes as contractors to do crucial AI work like labeling image or place LLM reception for Big Tech and others . But the AI startup , most recentlyvalued at $ 13.8 billion , is facing bestride effectual challenge over its undertaking practice .
On January 3 , 2025 , former Scale AI worker Amber Rogowiczfiled a lawsuitalleging that Scale misclassified her and other worker as contractors alternatively of employee . The causa take the ship’s company ’s earnings effectively works out to $ 15 an hour , alleging this transgress California ’s $ 16.00 minimum remuneration at the fourth dimension of her employment ( it ’s now $ 16.50 ) .
Rogowicz process for Scale ’s subsidiary Outlier from March to June of 2024 , according to the causa . On a typical daylight , she worked about 10 hours but say she was only make up for five , partly because the time she spent review pedagogy and training was n’t paid , the suit claims . Because the suit is challenging the declarer classification , it also alleges widespread infraction of DoS laws that cover employee extra time earnings , business expenses , time - off for meals , and sick days .
This is the second time in less than a month that Scale has been sued over these types of business organisation . On December 10 , 2024 , a case was filed against Scale arguing widespread wage larceny and prole misclassification , SFGate report . In that lawsuit , the plaintiff essay to be the track of a class activity lawsuit .
Rogowicz ’s suit is not a class military action but was brought under California ’s Private Attorneys General Act ( PAGA ) , which empowers workers to implement labor law on behalf of the state . PAGA suits are often faster and easier to file than class action , but 75 % of penalization must go to the state . Rogowicz ’s cause does n’t name any other plaintiffs , but seeks penalties on behalf of likewise deposit workers who did AI work for Scale .
Rogowicz ’s lawsuit is n’t seeking a specific dollar amount but requests statutory penalties that could total thousands of dollars per actor , plus attorneys ’ fees .
Scale voice Tom Channick tell TechCrunch that Scale pay Rogowicz fairly and remove her from Outlier for violating unspecified community guidelines . Scale say it in full comply with the practice of law and solve to ensure that pay rates systematically touch or surpass local living wage standards . Scale added that the lawsuit is unsurprising as plaintiff lawyers often front to copy earlier suit .
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In reply , Bay Area employment rights lawyer Bryan Schwartz , who is defend Rogowicz , told TechCrunch that he does n’t jazz the details of Scale ’s allegations against Rogowicz . But Schwartz said it is “ very common in these face that corporations aggress the messenger ” when they are on the hook shot for potential financial obligation require a big grouping of workers .
“ Hopefully our typesetter’s case will help the fellowship take province for and fix its misclassification of workers , and provide embossment to those aggrieved doer like our guest who have suffered wage intrusion in the past times , ” Schwartz said .
