The proposed $12,500,000 settlement covers California residents who did Contributor work for Scale AI or Smart Ecosystem, including people placed through HireArt. Payments follow each member's workweeks and PAGA penalties go to the state agency; no claim form is required. Final approval is pending.
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Benefit Summary
Participating Class Members who are PAGA Workers: available benefits include Pro rata Class Payment, Additional pro rata PAGA Payment.
Participating Class Members who are not PAGA Workers: available benefits include Pro rata Class Payment.
PAGA Workers who opt out of the Class Settlement: available benefits include Pro rata PAGA Payment.
Payments come from the $12,500,000 settlement fund and may change after approved deductions.
Available Awards
Participating Class Members who are PAGA Workers: Pro rata Class Payment + Additional pro rata PAGA Payment; Participating Class Members who are not PAGA Workers: Pro rata Class Payment; PAGA Workers who opt out of the Class Settlement: Pro rata PAGA Payment
Who Is Included
The Class includes California residents who provided services as Contributors for Defendants, or whom HireArt placed to perform similar services with Scale AI or Smart Ecosystem, from December 10, 2020 through February 28, 2026. PAGA Workers meet the same description for October 29, 2023 through February 28, 2026.
- Proof required: No supporting documents are required to receive an automatic payment. A written challenge to the Class Workweeks or PAGA Pay Periods credited to you must include supporting documentation, such as copies of pay stubs or other records.
Claim and Payment Information
- Claim method: Automatic payment by U.S. mail
- Instructions: No claim form is required. Eligible payments are mailed automatically. If you disagree with the workweeks or pay periods shown in the notice, you may submit a written challenge with supporting records by the stated deadline.
Questions & Answers
Who is included in the Class and the PAGA group?
- The Class covers people who, while living in California, performed Contributor work for the Defendants from December 10, 2020 through February 28, 2026. It also covers people HireArt placed in similar work with Scale AI or Smart Ecosystem during that period.
- The notice treats someone as residing in California if they had a California address in certain company records or the Defendants can reasonably verify they worked in California.
- The PAGA group uses the same type of work and California-residency test, but only for work from October 29, 2023 through February 28, 2026.
Do I need to file a claim to receive a payment?
- You do not need to submit a claim form. If you do nothing, you remain a Participating Class Member unless you opt out.
- The Administrator will mail one check to the address used for this notice. That check can include a Class payment, a PAGA payment, or both, depending on which groups you are in.
- If your address changes, notify the Administrator promptly.
How are the payment amounts worked out?
- The Class payment is a share of the Net Settlement Amount. It is based on your credited Class Workweeks compared with the total Class Workweeks of all Participating Class Members.
- The PAGA payment is a share of $175,000. It is based on your credited PAGA Pay Periods compared with the total PAGA Pay Periods of all PAGA Workers.
- Your notice lists the workweeks and pay periods the Defendants’ records credit to you. A blank PAGA estimate means those records show no work during the PAGA Period.
What if the workweeks or PAGA pay periods on my notice are wrong?
- You may challenge the Class Workweeks or PAGA Pay Periods shown in the notice by September 3, 2026.
- Your written challenge must give your name, say what number you are challenging, state the number you believe is correct, include supporting documents, be signed, and be sent by fax, email, or mail to the Administrator.
- Send copies, not original records. The notice specifically identifies pay stubs or other records as examples. The Administrator’s decision is final.
What changes if I opt out?
- To leave the Class Settlement, send a written, signed Request for Exclusion to the Administrator by September 3, 2026. It must identify you and say that you request exclusion from the Class Settlement in this case.
- Opting out means you will not receive a Class payment and will not give up the released Class claims.
- You cannot opt out of the PAGA Settlement. If you are a PAGA Worker, you can still receive a PAGA payment and remain bound by the PAGA release even if you opt out of the Class Settlement.
Can I object to the settlement?
- Only Participating Class Members may object to the Class Settlement. Written objections must be sent to the Administrator by September 3, 2026.
- An objection should identify what you oppose, why, and the supporting facts. It must identify the case and include your contact information, approximate work dates, and signature.
- You may also object at the Final Approval Hearing. The hearing is scheduled for October 30, 2026, at 9:00 a.m. in Department 304 of the San Francisco Superior Court, though the date may change.
What happens if I do not cash, or I lose, my check?
- Cash your check before the void date printed on it. An uncashed check is automatically cancelled, even though the release still applies to people bound by it.
- If more than $10,000 in Class and PAGA checks remains uncashed, there may be a second distribution to eligible people who cashed their first checks. If the total is less than $10,000, those funds go to the proposed cy pres recipient, Per Scholas.
- If you lose a check, ask the Administrator for a replacement before its void date.
How does the notice say payments will be reported for tax purposes?
- The notice says Class payments to Contributors are proposed to be treated as non-wage payments, generally reported on Form 1099 if required by law.
- For Participating Class Members who were not Contributors during the Class Period, the proposed allocation is 10% wages and 90% non-wages. The notice says the wage portion would be reported on Form W-2 and the non-wage portion on Form 1099, if required by law.
- The notice does not provide individual tax advice and says recipients are responsible for taxes on payments they receive.
Other Important Dates
- Exclusion deadline: 2026-09-03
- Objection deadline: 2026-09-03
- Final approval hearing: October 30, 2026, at 9:00 a.m.
- Hearing location: Department 304 of the San Francisco Superior Court, 400 McAllister St., San Francisco, CA 94102
Case Details
- Total settlement fund: $12,500,000
- Case name: McKinney, et al. v. Scale AI, Inc., et al.
- Case number: CGC24620481
- Court: Superior Court for the State of California
- Administrator: Simpluris Inc.
Sources
Official Settlement Notice (PDF)
Court-approved notice describing eligibility and benefits
Open PDF →Court-approved notice describing eligibility and benefits