"Scale AI has agreed to settle four lawsuits filed by its former workers in California alleging they were illegally underpaid and misclassified as contractors, according to court documents filed this week. The San Francisco-based company relies on a vast army of workers it considers contractors to help train AI models. Meta bought almost half of the startup in a blockbuster $14.3 billion AI deal this summer that saw former Scale CEO Alexandr Wang leave to head the tech giant's superintelligence team."
"In four suits filed in San Francisco Superior Court between December 2024 and May 2025, former workers Steve McKinney, Amber Rogowicz, and Chloe Agape, among others, accused Scale AI of misclassifying them as contractors, underpaying them, and denying them benefits, like overtime and sick pay, they would have been entitled to as regular employees. In a class action complaint, McKinney alleged that he wasn't paid for lengthy training webinars and was tracked using "Orwellian" software that monitored his mouse activity."
Scale AI agreed to settle four California lawsuits brought by former contract workers alleging misclassification, underpayment, and denial of benefits such as overtime and sick pay. Plaintiffs alleged unpaid training time, below-minimum wages on the Outlier platform, and intrusive monitoring of activity through software. The suits were filed in San Francisco Superior Court between December 2024 and May 2025 by workers including Steve McKinney, Amber Rogowicz, and Chloe Agape. Meta acquired nearly half of Scale in a $14.3 billion deal, after which the former CEO left to join Meta. Settlement terms remain undisclosed pending judicial approval, and Scale has stopped hiring California gig workers.
Read at Business Insider
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