According to sources directly familiar with the matter, the US Department of Labor has terminated its investigation into compliance with the AI on a scale with the Fair Labor Standards Act.
The FLSA is a federal law that regulates the wrong classification of employees as independent contractors and unpaid wages. Tech Crunch first reported that the scale was the subject of such an investigation in March.
Two of the two HR HR partners of Scale AI, who are also being investigated to comply with the FLSA. Per Inc. MagazineDOL is no longer being investigated, each of them confirmed the tech cranch.
Scale AI, which costs $ 13.8 billion last year, depends on an army of workers who have ranked contractors, such as labeling photos for big tech.
However, a scale has been prosecuted by former workers, alleging that they are lowering less salaries and incorrectly as contractors rather than employees, and refuses to access the benefits such as sick leave.
It is unclear why the DOL dropped the investigation. San Francisco -based Scale AI refused to comment on it, while the DOL did not respond to the request to comment.
However, there are several possible reasons.
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A recent move by the DOL that with the agency, is on a friendly approach to classifying workers as contractors Announcement on May 1st It was no longer implemented at least a rule of the Biden era, at least, which has made it more difficult.
Scale AI also wants a favor with the Trump administration. Its CEO Alexander Wang Attended The inauguration of Trump (like many other tech CEOs) has also published a letter urging Trump to “win the AI war.”
Meanwhile, Michael Crotos, the former managing director of Scale AI, was Verification As the new director of the White House’s Office of Science and Technology Policy in March.
The position includes advice to the president about science and tech, and has no surveillance on the DOL. Christians did not immediately respond to a request for comment.