Surge AI is the latest San Francisco startup accused of misclassifying its workers
Artificial intelligence training company Surge AI is facing a lawsuit alleging that it has misclassified contractors hired to enhance chat responses from AI software for top tech companies globally. The lawsuit claims that "data annotators" employed by Surge AI to ensure the accuracy and human-like quality of text responses from AI systems owned by Meta and OpenAI were intentionally classified as independent contractors, depriving them of employee benefits.
Plaintiff Dominique DonJuan Cavalier II from California, represented by public interest law firm Clarkson, alleges that he and other data annotators were required to undergo unpaid training and were given unrealistic time constraints on tasks, resulting in reduced pay. Surge AI, based in San Francisco and also known as Surge Labs, is accused of profiting significantly by not providing wages and benefits to workers who play a crucial role in the company's operations.
AI Industry Labor Issues
Similar to allegations against other AI training companies like Scale AI, Surge AI's practices have come under scrutiny. Scale AI, a major AI training company, has also faced lawsuits for worker misclassification. Workers in California and across the United States have begun to voice concerns over similar labor issues as the AI industry continues to expand.
Scale AI, which has a substantial contractor workforce for training AI tools for companies such as Open AI and Google, as well as for the U.S. Department of Defense, has been valued at potentially $25 billion. In contrast, Surge AI has raised around $25 million, according to Crunchbase.
Legal Actions and Allegations
Plaintiff Steve McKinney, employed by Scale AI's subsidiary Outlier AI, filed a lawsuit in December alleging misleading payment practices. Workers who questioned the company's policies in internal communications were reportedly removed from the app. Another lawsuit against Scale AI claimed workers were exposed to disturbing content, leading to psychological issues.
Despite these allegations, Scale AI has defended its practices, stating that they provide "flexible work opportunities" to Americans. These controversies have attracted attention from various media outlets and have raised concerns about the treatment of workers in the AI industry.
For more details, you can read the original story on the Los Angeles Times.
