Surge AI is latest San Francisco startup accused of misclassifying its workers
Los Angeles TimesWednesday, May 21, 2025 at 8:55:39 PM
Yet another San Francisco tech company is under fire for how it treats workers—this time, it's AI startup Surge Labs. The company allegedly labeled its workers as independent contractors instead of employees, which means they missed out on benefits like healthcare and paid leave. It's a familiar story in the tech world, where companies often try to cut costs by skirting labor laws.
What This Means: Worker misclassification is a big deal, especially in high-cost cities like San Francisco. When companies dodge employee status, workers lose protections and benefits, while the company saves money. This case highlights the ongoing tension between Silicon Valley's hustle culture and fair labor practices—something regulators and workers are pushing back on harder than ever.
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