The Department of Labor just dropped its investigation into Scale AI

The US Department of Labor has brought its investigation into the compliance of Scale AI of the Fair Work Standards law (FLSA), according to a source familiar with the matter.

FLSA is a federal law that regulates poor classification of employees as independent contractors and unpaid wages. Techcrunch first stated that the scale was the subject of this investigation in March.

DOL no longer has Upwork and Hireart, HR partners from AI Scale who were also investigated to comply with FLSA Per Inc.

SCALE AI, which was valued last year at $ 13.8 billion, is based on an army of workers who classify him as contractors to do critical artificial intelligence, such as describing pictures of large technology.

However, the scale was sued by former colleagues claiming that they have received low salaries and classified them as contractors instead of employees, and depriving them of reaching advantages such as sick leave.

It is not exactly the reason why DOL’s investigation is dropped.

Amnesty International, based in San Francisco, rejected the comment. Updated on May 9, 2025 -Scale AI confirmed this news after publishing, as Joe Osborne Techcrunch spokesman told DOL decision:

“We are happy with this update,” said Usborne. “The creation of new forms of work in artificial intelligence is vital to the economic growth of America, and we are proud of the elastic earning opportunities presented through our platforms.”

DOL did not respond to a request for comment.

There are several possible reasons for the cause of DOL decrease in the investigation.

DOL hints recently moved in a more friendly approach to classifying workers as contractors, as the agency announced on May 1 that it is no longer implemented, at least at the present time, a base of the Biden era that made this more difficult.

Scale AI is also looking for Saleh with the Trump administration. Alexandr Wang CEO of Alexandr Wang attended the opening of Trump (like many technology executives) and published a speech urging Trump to “win the war of artificial intelligence”.

Meanwhile, the former Administrative Director of Ai Michael Kratsios was confirmed in March as a new director of the White House Science and Technology Office.

The situation involves advising the president on scientific and technical issues, and has no supervision of DOL. Kratsssus did not immediately respond to a request for comment.