Employment

Scale AI Worker Misclassification Settlement

Settlement Amount
$12,500,000 fund; estimated $7,543,333.33 net to class members

Claim Status
Automatic Distribution — No Claim Required; opt-out/challenge by September 3, 2026

Total Fund
$12,500,000

Scale AI Inc., Smart Ecosystem Inc., and related entities have agreed to a $12,500,000 California worker misclassification settlement (estimated $7,543,333.33 net to class members). Eligible California independent contractors and HireArt-placed contributors who worked between December 10, 2020 and February 28, 2026 are paid automatically — no claim form required. Opt-out/challenge deadline: September 3, 2026.

Do I Qualify?

You may be eligible if:

You provided services as an independent contractor to Scale AI Inc. or Smart Ecosystem Inc., or HireArt Inc. placed you for similar contributor services
You resided in California while performing those services
Your work occurred between December 10, 2020 and February 28, 2026
You performed AI contributor work such as data annotation, prompt engineering, or subject-matter expert tasks (including platforms like Outlier or Remotasks)
No claim form is required — payment is based on company records

No claim form needed. Payment is automatic based on company records of workweeks and pay periods. Simpluris will mail a check to the address on file. If you have moved, contact the administrator to update your address before distribution.

Automatic Distribution — No Claim Required

Eligible class members receive payment automatically. Simpluris will mail a check to the address on file based on company records of workweeks and pay periods worked. No claim form is required. If you have moved, notify the administrator to ensure delivery: mckinneyscaleaisettlement.com.

What Happened?

Plaintiffs alleged Scale AI Inc., Smart Ecosystem Inc., and related entities misclassified California contributors as independent contractors rather than employees, denying wage-and-hour and related protections. HireArt Inc. placed some workers to perform similar contributor services. Defendants deny wrongdoing and agreed to settle.

The settlement creates a $12,500,000 fund with an estimated $7,543,333.33 net available for class members after court-approved fees, costs, and administration. Covered work includes AI data annotation, prompt engineering, and subject-matter expert work on platforms such as Outlier or Remotasks during the December 10, 2020 through February 28, 2026 class period.

Payments are automatic. Simpluris mails checks to addresses on file using company records of workweeks and pay periods. Class members also may receive a PAGA component based on pay periods from October 29, 2023 through February 28, 2026. Amounts vary by individual work history.

No claim form is required. The September 3, 2026 deadline is for opt-outs and challenges. Class members who have moved should notify the administrator so checks reach the correct address. Official site: mckinneyscaleaisettlement.com.

Do I Need to File a Claim?

NO ACTION NEEDED — payment is automatic
The settlement administrator (Simpluris) will mail a check to the address on file based on company records of workweeks/pay periods worked
No claim form required
Those who've moved should notify the administrator to ensure delivery
Official settlement site: https://mckinneyscaleaisettlement.com/

How Much Will I Actually Get?

Pro rata share of the ~$7.54M net settlement fund based on workweeks worked during the class period (Dec. 10, 2020 - Feb. 28, 2026), plus a PAGA payment for aggrieved employees based on pay periods worked Oct. 29, 2023 - Feb. 28, 2026. Amount varies by individual work history.

Last reviewed: July 25, 2026 | Information verified from court records and official settlement documents.

Frequently Asked Questions

Who qualifies for the Scale AI worker misclassification settlement?

You may qualify if you provided services as an independent contractor to Scale AI Inc. or Smart Ecosystem Inc., or HireArt Inc. placed you to perform similar contributor services, while residing in California between December 10, 2020 and February 28, 2026. The class includes AI data annotators, prompt engineers, and subject matter experts who worked on platforms like Outlier or Remotasks.

Do I need to file a claim for the Scale AI settlement?

No. Payment is automatic. Simpluris will mail a check to the address on file based on company records of workweeks and pay periods worked. No claim form is required. If you have moved, notify the administrator so your check is delivered correctly.

How is the Scale AI settlement payment amount calculated?

Eligible class members receive a pro rata share of the approximately $7.54 million net settlement fund based on workweeks worked during the December 10, 2020 through February 28, 2026 class period, plus a PAGA payment for aggrieved employees based on pay periods worked October 29, 2023 through February 28, 2026. Exact amounts vary by individual work history.

What is the Scale AI settlement opt-out and challenge deadline?

The deadline to opt out or challenge the settlement is September 3, 2026. No claim form is required to receive payment — distribution is automatic based on company records. Visit mckinneyscaleaisettlement.com for administrator contact details if you need to update your address.