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Scale AI hit by its second employee wage lawsuit in less than a month
AI startup Scale has been hit with yet another wage lawsuit in under a month, highlighting the ongoing controversy surrounding its labor practices.
Former Scale worker Amber Rogowicz filed a lawsuit on January 3 alleging that Scale misclassified her and other workers as contractors rather than employees. The suit claims that this led to violations of California state law, including minimum wage violations. Specifically, it alleges that Scale’s pay effectively works out to $15 an hour, which is below the state’s then-$16.00 minimum wage (now $16.50).
The lawsuit also accuses Scale of failing to provide essential benefits and protections afforded to employees under state law, such as overtime pay, business expenses, time-off for meals, and sick days. Rogowicz worked at Scale’s subsidiary Outlier from March to June 2024.
This latest suit follows a previous one filed on December 12, which alleged widespread wage theft and worker misclassification. The recent lawsuit is notable in that it was brought under California’s Private Attorneys General Act (PAGA), allowing Rogowicz to seek penalties on behalf of similarly situated workers who did AI work for Scale.
While the details of Scale’s allegations against Rogowicz are unclear, a spokesperson for the company claimed that they paid her fairly and fired her for violating unspecified community guidelines. The representative also stated that Scale complies with all applicable laws and works to ensure its pay rates align with industry standards.
However, attorney Bryan Schwartz, who is representing Rogowicz, countered this assertion by stating that it is common for companies to attack the messenger when they are at risk of being held liable for potential liabilities involving a large group of workers. He expressed hope that this case will prompt Scale to take responsibility for its misclassification practices and provide relief to those affected.
The ongoing controversy surrounding Scale’s labor practices has sparked widespread concern in the industry, particularly given Elon Musk’s recent comments acknowledging the exhaustion of AI training data. As one of the most prominent companies in the field, Scale’s actions have significant implications for the future of AI development and deployment.
In response to this latest lawsuit, a representative for TechCrunch stated that they will continue to closely monitor developments surrounding Scale’s labor practices and provide updates as necessary.
Source: techcrunch.com
