Scale AI hit by its second employee wage lawsuit in less than a month

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Image Credits:David Paul Morris/Bloomberg via Getty / Scale AI co-founder and CEO Alexandr Wang Scale AI relies on an army of workers it categorizes as contractors to do essential AI work like labeling images or rating LLM responses for Big Tech and others. But the AI startup, most recently valued at $13.8 billion , is facing mounting legal challenges over its labor practices. On January 3, 2025, former Scale AI worker Amber Rogowicz filed a lawsuit alleging that Scale misclassified her and other workers as contractors instead of employees. The suit claims the company’s pay effectively works out to $15 an hour, alleging this violates California’s $16.00 minimum wage at the time of her employment (it’s now $16.50). Rogowicz worked for Scale’s subsidiary Outlier from March to June of […]

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