Scale AI Contributor Misclassification Class Action Settlement
Scale AI Contributor Misclassification Class Action Settlement
Scale AI, Inc., Smart Ecosystem, Inc., HireArt, Inc., and several individual defendants agreed to pay $12,500,000 to settle claims that California workers who provided AI data services were misclassified as independent contractors and denied wages and other protections under California law. Contributors and HireArt-placed workers covered by the settlement do not need to file a claim; they are paid automatically based on their workweeks after final approval.
Settlement fund
$12.5M
Gross Settlement Amount
Top payout
Automatic
Share based on your workweeks, no claim form
Claim form
No claim form
Final approval hearing Oct 30, 2026
No claim form needed
Covered workers should confirm their mailing address with Simpluris so their settlement check reaches them.
Do you qualify?
You are a Class Member if ALL of the following apply:
- You performed services as a Contributor with Scale AI or Smart Ecosystem, such as generative AI annotation, prompt engineering, or subject matter expert work, including through platforms like Outlier or Remotasks, while residing in California.
- Or you were placed by HireArt, Inc. to perform similar services with Scale AI or Smart Ecosystem while residing in California.
- Your work falls within the Class Period (and, for PAGA payments, the PAGA Period) stated in the Class Notice. No claim form and no proof needed. Your workweeks come from Defendants' records.
- Excluded: Anyone who submitted a valid request for exclusion by September 3, 2026. Opting out of the class does not opt out of the PAGA settlement.
Not sure if you qualify? Call the Settlement Administrator at (833) 234-6281, email info@McKinneyScaleAISettlement.com, or visit ScaleAIClassSettlement.com.
What happened
Plaintiffs sued Scale AI, Inc., Smart Ecosystem, Inc., HireArt, Inc., and individual defendants in San Francisco Superior Court. They allege that workers who provided services as Contributors were misclassified as independent contractors or exempt employees, and that Defendants failed to pay wages and overtime, provide meal and rest periods, issue accurate wage statements, reimburse expenses, provide paid sick leave, and give required WARN notices, in violation of California law. The suit also seeks civil penalties under PAGA.
Defendants deny all of the allegations, maintain that Contributors are independent contractors, and do not admit any violation by agreeing to settle. The Court has not decided who is right. The Court has preliminarily approved the settlement, and the parties agreed to it to avoid the cost, risk, and delay of continued litigation.
How to file a claim
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1. Confirm you are a Class Member
If you received a Class Notice about McKinney, et al. v. Scale AI, Inc., et al., you are likely a Class Member, a PAGA Worker, or both. Your notice lists the Class Workweeks and PAGA Pay Periods credited to you. If you are unsure, call Simpluris at (833) 234-6281.
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2. Understand how your share is calculated
The estimated Net Settlement Amount of $7,543,333.33 is divided by the total Class Workweeks of all participating Class Members and multiplied by your own Class Workweeks. Separately, $175,000 in Individual PAGA Payments is divided by PAGA Pay Periods. Payments to Contributors are reported as non-wages on IRS Form 1099. The deadline to challenge your workweek count was September 3, 2026.
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3. No claim form: keep your address current
You do not need to file a claim. The Settlement Administrator will mail one check to the address on your notice, so notify Simpluris right away if you move: Simpluris, Inc., McKinney, et al. v. Scale AI, Inc., et al., c/o Settlement Administrator, P.O. Box 26170, Santa Ana, CA 92799, (833) 234-6281, or info@McKinneyScaleAISettlement.com. The Class Notice and Settlement Agreement are on the documents page of ScaleAIClassSettlement.com.
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4. Receive your payment
Checks are mailed after the Court grants final approval at the October 30, 2026 hearing and the settlement becomes effective. Each check has a void date, so cash it promptly. Lost checks can be replaced only if you ask before the void date.
Key dates
- Sep 3, 2026 Opt-out & objection deadline Passed
- Oct 30, 2026 Final Approval Hearing Upcoming
- Oct 30, 2026 Final Fairness Hearing (9:00 a.m. PT) Soon
- TBD after final approval Payments issued to claimants Pending
The Final Approval Hearing is scheduled for October 30, 2026 at 9:00 a.m. in Department 304 of the San Francisco Superior Court, 400 McAllister St., San Francisco, CA 94102. You may attend in person, by telephone, or through the Court's virtual appearance platform. The deadline to opt out, object, or challenge your workweeks was September 3, 2026. The Court may move the hearing, so check ScaleAIClassSettlement.com for updates before attending.
Where the money is going
Defendants agreed to pay a Gross Settlement Amount of $12,500,000. Attorneys' fees, litigation expenses, Class Representative payments, administration costs, and the PAGA Payment are deducted, leaving an estimated Net Settlement Amount of $7,543,333.33 for Individual Class Payments. If more than $10,000 in checks go uncashed, a second distribution goes to those who cashed their checks; otherwise leftover funds go to the cy pres recipient, Per Scholas.
All amounts listed above are pending and subject to final court approval at the October 30, 2026 Final Approval Hearing. The Court may award less than the amounts requested. The $175,000 in Individual PAGA Payments is paid in addition to Individual Class Payments. Leftover funds go to the cy pres recipient, Per Scholas, as described in the Class Notice.
Common questions
How much money will I receive?
Individual amounts are not fixed. Your share of the estimated $7,543,333.33 Net Settlement Amount depends on how many Class Workweeks you have compared with all participating Class Members. PAGA Workers also receive a share of $175,000 based on PAGA Pay Periods. Your notice lists your credited workweeks.
Do I need to submit proof of purchase?
No proof or claim form is needed. Workweeks and pay periods come from Defendants' records. The deadline to dispute those numbers with supporting documents was September 3, 2026.
What if I didn’t receive a notice?
Notices were mailed to workers identified in Defendants' records. If you think you qualify but did not get a notice, or your address has changed, contact Simpluris at (833) 234-6281 or info@McKinneyScaleAISettlement.com.
Does staying in the class affect my right to sue later?
Participating Class Members release the Labor Code, Wage Order, unfair competition, WARN, and related claims described in the Settlement Agreement for the Class Period. All PAGA Workers, including those who opted out of the class, release PAGA penalty claims for the PAGA Period.
When will payments be sent out?
Checks are mailed after the Court grants final approval at the October 30, 2026 hearing and the settlement becomes effective. An appeal could delay payment. Each check has a void date, so cash it promptly.
Dapeer Law, P.A.
Consumer class action attorneys based in South Florida. We track settlements so you don’t have to.
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This page is for informational purposes only and does not constitute legal advice. Dapeer Law, P.A. is not the administrator of this settlement and is not affiliated with Scale AI, Inc., Smart Ecosystem, Inc., HireArt, Inc., Alexandr Wang, Dennis Cinelli, Daniel Berrios, and Xiaote Zhu, Simpluris, Inc. (the Settlement Administrator), or Class Counsel Ryan J. Clarkson, Glenn A. Danas, Maxim Gorbunov, and Zarrina Ozari of Clarkson Law Firm, P.C., Bryan Schwartz and Sam Goity of Bryan Schwartz Law, P.C., and Laura L. Ho and Ginger Grimes of Dardarian Ho Kan & Lee. The case is McKinney, et al. v. Scale AI, Inc., et al., Case No. CGC-24-620481, pending in the Superior Court of California, County of San Francisco. Class representatives are Plaintiff McKinney and the other named Plaintiffs. Scale AI denies wrongdoing. This website is attorney advertising. Past results do not guarantee future outcomes.