Five months ago, we reported about a class action lawsuit against an artificial intelligence (AI) company that engages workers to perform data labeling and content creation and classifies them as independent contractors (ICs) instead of employees. We remarked then that it was only a matter of time before the AI industry became the subject of independent contractor misclassification litigation. Last month, among the four court cases we summarize below, is yet another class action lawsuit alleging IC misclassification filed against an AI company that engages data annotators to perform AI work. As we noted in that earlier blog post, nothing in particular about the AI industry should dissuade AI businesses from structuring, documenting, and implementing their IC relationships in a manner that complies with federal and almost all state laws governing ICs. Like companies in many other industries, companies in the AI industry can utilize a process such as IC Diagnostics (TM) to maximize IC compliance in a customized and sustainable manner consistent with their business models. Companies working on large language models would be wise to implement these types of steps to minimize the chances they will be sued for IC misclassification.
More Posts
Republican-Backed Congressional Proposal Seeks to Allow Companies to Offer Benefits to Independent Contractors: April 2025 IC Legal News Update
Trump Administration Reissues 2019 Opinion Letter on Independent Contractors and Virtual Marketplace Companies
Garden State May Soon Become Even Less Hospitable to Independent Contractors Than the Golden State
The Legal Landscape of Independent Contractor Misclassification May Be About to Change: March 2025 IC Legal News Update
Travel Industry Exposed to Independent Contractor Misclassification Claims: February 2025 IC Legal News Update
Federal Government’s Ping Pong Match on Independent Contractor Rule Is Distraction From Enhancing IC Compliance: January 2025 IC Legal News Update
Artificial Intelligence Industry Faces Independent Contractor Misclassification Claim: December 2024 IC Legal News Update
“Love is Blind” – Can Reality TV Shows Avoid Independent Contractor Misclassification of Contestants?
Federal Government Study Shows Independent Contractor Working Arrangement Steadily Increasing: November 2024 IC Legal News Update
Subscribe: Subscribe via RSS