Scale AI is investigated by the US Department of Labor

The US Department of Labor (DOL) is investigating AI to launch data to launch data to comply with the Law on Fair Labor Standards, TechCrunch has learned.

This is a federal law that regulates unpaid salaries, incorrect classification of employees as contractors and illegal revenge against employees.

The investigation has been active since at least August 2024, a document viewed by TechCrunch shows. And it goes on, according to a person directly familiar with the question.

The very existence of an investigation does not mean that the scale that AI has done something wrong, of course, and the investigation can find in favor of the company or be rejected.

Scale AI is based in San Francisco and was rated last year at $ 13.8 billionS He relies on an army of workers he categorizes as contractors to do the main work of AI, such as the labeling of images for large technology and other organizations.

Scale AI spokesman Joe Osborne told TechCrunch that the investigation was initiated during the previous presidential administration and this scale AI believes his work, testing and evaluation of AI was understood by the regulators then.

Osborne said scale AI works widely with DOL to explain its business model and that the conversations are productive. In general, Osborne said that scale AI has more “flexible AI job opportunities” than any other company and that the feedback from its associates is “extremely positive”.

“Hundreds of thousands of people use our platform to show their skills and make extra money,” Osborne said.

Scale Ai is really a popular work platform for concerts. But he recently faced the legal challenges of some former workers about his work practices. Two court cases have been brought Against the launch – one in December 2024 and the other in January 2025 – by former workers who claim to have been unpaid and wrongly classified as contractors instead of employees, refusing access to defenses such as overtime and sick days.

The AI ​​scale categorically challenges the court cases, saying that he fully complies with the law and works to ensure that his pay rates meet or exceed local salaries.

International Labor Practices on Scale AI were also subject to investigation by Washington Post in 2023S Workers abroad, described in the position requiring low -cost jobs as contractors. The company said that at that time, the pay rates were constantly improving.

The US Department of Labor Website He says he is able to resolve most cases administratively, but employers who violate the law can be fined and potential imprisonment. Dol also has the power to force employers to reclassify their workers as employees.

For example, in February 2024, the QWICK Hotel launches DOL appliances by paying $ 2.1 million and announcing that all California workers are working using the QWICK app would be classified as employees, Bloomberg Law reportedS

The Scale AI seems to be among the Silicon Valley companies who are looking for and seeing the new presidential administration. Its CEO and founder Alexander Wang, for example, present Investing Donald Trump in January Like many other technology executives.

More telling, scale of AI Former managing director, Michael Kratisis President Trump’s candidate for a new director of the White House Science and Technology Service. Previously, Kratsios was the Chief Technology Officer of the United States during the First Trump Administration.

In this position, Kratsios will advise Trump on science and technology. This position has no supervision of the Ministry of Labor. Kratios was part of Senate hearing February 25, but has not yet been confirmed. Kratsios did not respond to a request for comment.

The US Department of Labor spokesman Michael Peterssen told TechCrunch that he could not confirm or deny the existence of an investigation into a long -standing policy.