Exclusive: Scale AI hit by its second wage theft lawsuit in less than a month
Jan 09, 2025 - techcrunch.com
Scale AI, valued at $13.8 billion, is facing legal challenges over its labor practices, specifically regarding the classification of workers as contractors instead of employees. On January 3, 2025, former worker Amber Rogowicz filed a lawsuit under California’s Private Attorneys General Act (PAGA), alleging misclassification and wage violations, including being paid below the state’s minimum wage and not being compensated for all hours worked. The lawsuit seeks penalties on behalf of similarly-situated workers but does not specify a dollar amount. This follows another lawsuit filed in December 2024, which also accused Scale of wage theft and worker misclassification.
Scale AI has denied the allegations, stating that Rogowicz was paid fairly and was terminated for violating community guidelines. The company claims compliance with labor laws and suggests that the lawsuit is an attempt by plaintiff lawyers to replicate previous suits. Rogowicz’s attorney, Bryan Schwartz, argues that such corporate responses are common when facing potential liabilities and hopes the case will lead to proper worker classification and relief for affected workers.
Key takeaways:
Scale AI is facing legal challenges over its labor practices, with allegations of worker misclassification and wage violations.
Amber Rogowicz filed a lawsuit under California's Private Attorneys General Act, claiming she and others were misclassified as contractors and underpaid.
The lawsuit alleges violations of state laws regarding overtime pay, business expenses, and time-off for meals and sick days.
Scale AI denies the allegations, stating they comply with the law and suggesting the lawsuit is part of a trend of similar legal actions.
