The Department of Labor just dropped its investigation into Scale AI

According to sources directly familiar with the matter, the US Department of Labor has terminated its investigation into compliance with the AI ​​scale on a scale of the Fair Labor Standards Act (FLSA).

The FLSA is a federal law that regulates the wrong classification of employees as independent contractors and unpaid wages. Tech Crunch reported it first Scale was the subject of such an inquiry 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, who Last year it cost.8 $ 13.8 billionThe workers’ army depends on the AI’s critical work as contractors, such as labeling photos for Big Tech.

However, on a scale Have been tried Former workers, accusing them of being less salaries and wrongdoing 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 make any comment. Updated on 9 May 2025 -Scale AI confirmed the publication after the news, spokesman Joe Osborne told Tech Crunch that it was happy with the DOL decision:

“We are happy with this refreshment.” Creating new forms of work in AI is essential for America’s economic growth, and we are proud of the flexible earnings offered by our platforms, said Wasbourne.

The DOL did not respond to a comment.

There are several possible reasons why the DOL has dropped the investigation.

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 opening of Trump (Like many other tech CEO) And is Posted a letter emphasizing 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.