AI Training Firm Surge AI Hit With Worker Misclassification Suit

The artificial intelligence training platform Surge Labs Inc., which hires “data annotators” to help improve AI model responses, was sued in California state court Tuesday for misclassifying the annotators as independent contractors.

The proposed class action alleges Surge AI deliberately misclassified its workers, denying them key benefits afforded to employees while the company receives a “major windfall in labor costs.”

The annotators, who are tasked with AI training projects for client companies including Meta Platforms Inc. and OpenAI Inc., lack protections afforded under California labor law, including minimum wage, overtime, and meal and rest break periods, the lawsuit said. ...