Scale AI, valued at $13.8 billion last year, depends on workers it classifies as contractors to perform tasks such as rating AI model responses.
Earlier this month, a former worker filed a lawsuit claiming she was effectively paid below minimum wage and misclassified as a contractor. A similar complaint was filed in December 2024.
The most recent lawsuit, filed on January 17 in the Northern District of California, is a class action focusing on the psychological harm allegedly experienced by six individuals who worked on Scale’s platform, Outlier.
The plaintiffs claim they were required to write disturbing prompts related to violence and abuse, including child abuse, without sufficient psychological support, and faced retaliation when they sought mental health assistance. They argue they were misled about the nature of the job during the hiring process, which led to mental health issues like PTSD. They are seeking the establishment of a medical monitoring program, new safety standards, and unspecified damages along with attorney fees.
One of the plaintiffs, Steve McKinney, is also the lead plaintiff in the separate December 2024 lawsuit against Scale. The same law firm, Clarkson Law Firm from Malibu, California, represents the plaintiffs in both cases.
Clarkson Law Firm had previously filed a class action against OpenAI and Microsoft, alleging the use of stolen data. The case was dismissed after a district judge criticized the complaint for being too lengthy and containing irrelevant information. Referencing this case, Scale AI spokesperson Joe Osborne criticized Clarkson Law Firm, stating that the company intends to “defend ourselves vigorously."
"Clarkson Law Firm has previously — and unsuccessfully — gone after innovative tech companies with legal claims that were summarily dismissed in court. A federal court judge found that one of their previous complaints was ‘needlessly long’ and contained ‘largely irrelevant, distracting, or redundant information,’” Osborne told TechCrunch.
Osborne emphasized that Scale complies with all laws and regulations, with “numerous safeguards” in place to protect its contributors, such as the ability to opt out at any time, prior notice of sensitive content, and access to health and wellness programs. He added that Scale does not take on projects involving child sexual abuse material.
In response, Glenn Danas, a partner at Clarkson Law Firm, told TechCrunch that Scale AI has been “forcing workers to view gruesome and violent content to train these AI models” and has failed 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.