Scale AI has been hit with its third lawsuit in just over a month concerning alleged labor practices. This latest legal action stems from workers who claim they endured psychological trauma from reviewing disturbing content without adequate safeguards.
The company, which is the parent company of Outlier AI and previously valued at $13.8 billion last year, depends on workers it designates as contractors to carry out tasks like rating AI model responses. The new allegations highlight ongoing concerns about the support and protections provided to contractors handling challenging and potentially harmful material.
Earlier this month, a former employee filed a lawsuit claiming she was paid below the minimum wage and was improperly classified as a contractor. Additionally, a complaint addressing similar issues was submitted in December 2024.
On January 17, a new class action lawsuit was filed in the Northern District of California against Scale AI. This complaint centers on the psychological trauma allegedly experienced by six individuals who worked on Scale’s Outlier platform.
The plaintiffs allege that they were compelled to create disturbing prompts involving violence and abuse—including child abuse—without receiving adequate psychological support. When they sought mental health assistance, they faced retaliation. They claim that the true nature of the job was misrepresented during the hiring process, leading to mental health issues such as PTSD as a result of their work. The plaintiffs are requesting the implementation of a medical monitoring program, the establishment of new safety standards, as well as unspecified damages and attorney fees.
One of the plaintiffs, Steve McKinney, is the lead in the separate December 2024 lawsuit against Scale AI. Both cases are being represented by Clarkson Law Firm of Malibu, California.
Clarkson Law Firm had previously filed a class action lawsuit against OpenAI and Microsoft, alleging the use of stolen data. The suit was dismissed after a district judge criticized its length and content. Referring to that case, Joe Osborne, a spokesperson for Scale AI, condemned Clarkson Law Firm and stated that Scale plans “to defend ourselves vigorously.”
Joe Osborne told members of the media, “Clarkson Law Firm has previously — and unsuccessfully — pursued innovative tech companies with legal claims that were swiftly dismissed by the court. A federal judge found that one of their earlier complaints was ‘needlessly long’ and included ‘largely irrelevant, distracting, or redundant information.’”
Osborne stated that Scale adheres to all applicable laws and regulations and has “numerous safeguards in place” to protect its contributors. These measures include the ability for contributors to opt out at any time, advance notice of sensitive content, and access to health and wellness programs. Additionally, Osborne emphasized that Scale does not undertake projects that may involve child sexual abuse material.
In response, Glenn Danas, a partner at Clarkson Law Firm, told members of the media 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 workplace.
“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.
