Scale AI Under Fire: Second Wage Lawsuit in Weeks Highlights Contractor Concerns
Scale AI, the high-profile AI startup valued at $13.8 billion, is facing renewed legal scrutiny over its labor practices. This marks the second lawsuit in less than a month challenging the company’s classification of workers as independent contractors rather than employees.
The Latest Legal Challenge
On January 3, 2025, former Scale AI worker Amber Rogowicz filed a lawsuit alleging:
- Misclassification: Rogowicz claims she and others were improperly labeled as contractors despite performing core AI tasks like data labeling and LLM response rating.
- Wage Violations: Her suit alleges effective pay of $15/hour, below California’s \(16.00 minimum wage at the time (now \)16.50).
- Unpaid Work Hours: Rogowicz states she worked 10-hour days but was only compensated for 5 hours, with unpaid time spent on training and instructions.
The lawsuit, filed under California’s Private Attorneys General Act (PAGA), seeks penalties for widespread labor violations including:
- Unpaid overtime
- Meal break violations
- Lack of sick pay
- Unreimbursed business expenses
A Growing Pattern of Legal Issues
This follows a December 10, 2024 class action lawsuit alleging similar wage theft and misclassification issues. While Rogowicz’s case isn’t a class action, it could set important precedents for how AI companies compensate their workforce.
Scale AI’s Response
Company spokesperson Tom Channick stated:
- Rogowicz was paid fairly
- Her removal from Scale subsidiary Outlier was due to “violating community guidelines”
- Scale complies with all labor laws and claims pay meets/exceeds local living wages
- Characterized the lawsuit as opportunistic “copycat” litigation
Legal Experts Weigh In
Bryan Schwartz, Rogowicz’s attorney, countered:
- Disputed Scale’s characterization of Rogowicz
- Noted it’s common for companies to “attack the messenger” in wage cases
- Expressed hope the case would force Scale to reform its labor practices
Why This Matters
These lawsuits highlight growing tensions in the AI industry between:
- The need for large human workforces to train AI systems
- The legal and ethical obligations to properly classify and compensate workers
As AI companies scale rapidly, their labor practices are coming under increased scrutiny from regulators and workers alike. The outcome of these cases could have significant implications for the entire AI sector’s workforce models.
📚 Featured Products & Recommendations
Discover our carefully selected products that complement this article’s topics:
🛍️ Featured Product 1: Barzini – Velvet Upholstered Tufted Storage Bench – Black
Image: Premium product showcase
High-quality barzini – velvet upholstered tufted storage bench – black offering outstanding features and dependable results for various applications.
Key Features:
- Premium materials and construction
- User-friendly design and operation
- Reliable performance in various conditions
- Comprehensive quality assurance
🔗 View Product Details & Purchase
🛍️ Featured Product 2: Barzini – Dresser Mirror
Image: Premium product showcase
Carefully crafted barzini – dresser mirror delivering superior performance and lasting value.
Key Features:
- Professional-grade quality standards
- Easy setup and intuitive use
- Durable construction for long-term value
- Excellent customer support included
🔗 View Product Details & Purchase
💡 Need Help Choosing? Contact our expert team for personalized product recommendations!
