Scale AI Faces Third Worker Lawsuit in a Month

Scale AI Faces Third Lawsuit Regarding Worker Treatment

Scale AI is currently contending with a third legal challenge in a little over a month, stemming from allegations concerning its labor practices. This latest suit originates from workers who assert they experienced psychological distress as a result of reviewing deeply disturbing content without sufficient protective measures.

Details of the Recent Complaint

The company, which achieved a valuation of $13.8 billion in the previous year, utilizes a workforce categorized as contractors to perform tasks such as evaluating responses generated by AI models.

A prior lawsuit, filed earlier this month, alleged that a former employee was compensated at a rate effectively below the minimum wage and was incorrectly classified as an independent contractor. A similar complaint was also submitted in December 2024.

This most recent legal action, lodged on January 17th in the Northern District of California, is a class action lawsuit centering on the psychological harm reportedly endured by six individuals who worked on Scale’s Outlier platform.

Allegations of Psychological Harm and Retaliation

The plaintiffs contend they were compelled to generate unsettling prompts concerning violence and abuse—including instances of child abuse—without receiving adequate psychological support.

Furthermore, they claim they faced repercussions when they sought mental health assistance. They state they were given misleading information regarding the job's true nature during the recruitment process and subsequently developed mental health conditions, such as PTSD, due to their work.

The plaintiffs are requesting the establishment of a medical monitoring program, alongside the implementation of enhanced safety protocols. They are also seeking unspecified financial damages and reimbursement for legal fees.

Connection to Previous Litigation

Steve McKinney, one of the plaintiffs in this case, also serves as the lead plaintiff in the separate December 2024 complaint filed against Scale. The Clarkson Law Firm of Malibu, California, is providing legal representation to the plaintiffs in both instances.

Scale AI's Response and Prior Legal Battles

The Clarkson Law Firm previously initiated a class action suit against OpenAI and Microsoft, alleging the use of unlawfully obtained data. This case was ultimately dismissed by a district judge who criticized its length and content.

Acknowledging this prior case, Joe Osborne, a spokesperson for Scale AI, leveled criticism at the Clarkson Law Firm and affirmed Scale’s intention to “defend ourselves vigorously.”

Osborne stated that the firm had previously pursued—and failed in—legal claims against innovative technology companies. He highlighted a court ruling that described a previous complaint as “needlessly long” and filled with “largely irrelevant, distracting, or redundant information.”

Scale AI's Safeguards and Policies

Osborne asserted that Scale adheres to all applicable laws and regulations and has “numerous safeguards in place” to protect its contributors. These include the option to withdraw from tasks at any time, advance warning regarding sensitive content, and access to health and wellness resources.

He further emphasized that Scale does not undertake projects involving child sexual abuse material.

Clarkson Law Firm's Counterarguments

In response, Glenn Danas, a partner at Clarkson Law Firm, conveyed to TechCrunch that Scale AI has been “forcing workers to view gruesome and violent content to train these AI models” and has neglected to ensure a secure work 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 concluded.

• The lawsuits allege psychological trauma from reviewing disturbing content.
• Scale AI maintains it has safeguards in place for its workers.
• The Clarkson Law Firm is representing plaintiffs in multiple suits against tech companies.