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Scale AI Settles Worker Misclassification Lawsuits in California, Shifts Hiring Practices

Scale AI has reportedly agreed to settle multiple lawsuits filed by former California contractors who alleged misclassification and underpayment. The company has since stopped hiring California-based gig workers as it faces additional legal challenges and regulatory scrutiny.

Scale AI Reaches Settlement in Contractor Lawsuits

Scale AI has agreed to settle four lawsuits filed by former workers in California who alleged they were illegally classified as contractors rather than employees, according to court documents filed this week. The San Francisco-based company, which specializes in artificial intelligence training data, reportedly reached settlements with all plaintiffs across the multiple cases, though specific terms remain undisclosed pending judicial approval.