Scale AI Faces Third Lawsuit Over Alleged Labor Practices
In a troubling development, Scale AI, valued at $13.8 billion as of last year, finds itself embroiled in its third lawsuit over alleged labor practices within just over a month. This time, the complaint comes from workers who claim to have suffered psychological trauma from reviewing distressing content without adequate safeguards in place.
Background of the Allegations
Scale AI relies heavily on individuals categorized as contractors to perform tasks such as rating AI model responses. Earlier this month, a former worker filed a lawsuit alleging she was effectively paid below the minimum wage and was misclassified as a contractor. Similarly, another complaint highlighting these concerns was lodged in December 2024.
The Latest Complaint
The most recent complaint was filed on January 17 in the Northern District of California. It is a class action lawsuit that centers around the psychological damages purportedly suffered by six individuals who worked on Scale’s Outlier platform. The plaintiffs allege they were coerced into creating disturbing prompts dealing with violence and abuse, including child abuse, without appropriate psychological support. They claim to have faced retaliation when they sought mental health assistance.
The workers contend they were misled about the job’s nature during hiring and ultimately developed mental health issues such as PTSD due to their work.
– Class Action Complaint
Demands and Legal Proceedings
The plaintiffs are seeking the establishment of a medical monitoring program alongside new safety standards, as well as unspecified damages and attorney fees. One of the plaintiffs, Steve McKinney, is also the lead plaintiff in a separate December 2024 complaint against Scale. Both complaints are being represented by Clarkson Law Firm based in Malibu, California.
Scale AI’s Response
Joe Osborne, a spokesperson for Scale AI, has voiced criticism towards Clarkson Law Firm and stated that Scale plans to defend itself robustly. Osborne remarked that Clarkson Law Firm has previously initiated legal actions against innovative tech companies with claims that were swiftly dismissed by courts for being overly lengthy and irrelevant.
“Clarkson Law Firm has previously – and unsuccessfully – gone after innovative tech companies with legal claims that were summarily dismissed in court,” Osborne told TechCrunch.
– Joe Osborne, Scale AI Spokesperson
Safeguards and Company Policies
Osborne emphasized that Scale complies with all laws and regulations while maintaining numerous safeguards to protect its contributors. These include the ability to opt-out at any time, advance notice of sensitive content, and access to health and wellness programs. He further clarified that Scale does not engage in projects involving child sexual abuse material.
Counterarguments from Clarkson Law Firm
In contrast, Glenn Danas, a partner at Clarkson Law Firm, has accused Scale AI of compelling workers to view gruesome and violent content for training AI models and failing to ensure a safe working environment.
“We must hold these big tech companies like Scale AI accountable or workers will continue to be exploited to train this unregulated technology for profit,” Danas said.
– Glenn Danas, Partner at Clarkson Law Firm
