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TechCrunch has learned that the US Labor Department is investigating the Data Labeling Startup Scale AI to consent to the Fair Labor Standards Act.
It is a federal law that controls unpaid wages, misinformation of staff as a contractor, and illegal revenge against workers.
A document seen by the TechCrunch Show has been active in the investigation since August 2024. And it is running, according to a person directly familiar with the subject.
The mere existence of the investigation does not mean that the scale AI must have made any mistake, and the investigation may find or dismiss the organization.
Scale AI San Francisco and based Last year was worth $ 13.8 billion dollarsThe It depends on the workers as a contractor to work the necessary AI to work for large technology and other companies for other agencies.
Scale AI spokesman Joe Osburn told TechCrunch that the investigation was launched during the previous presidential administration and the scale AI felt that the work, examined and evaluated AI, the regulators had misunderstood.
Osburn said that scale AI worked greatly with DOL to explain the model of his business and the conversations were productive. In general, Osburn said that the scale AI brings more “flexible job opportunities to AI” to Americans than any other organization and its contributors are “too positive”.
“Thousands of people use our platform to show their skills and make extra money.”
Scale AI is indeed a popular gig job platform. However, it has recently faced legal challenges on some former workers’ labor. Two cases were filed In contrast to the startup – one in December 2024 and the other in January 2025 – alleged that they have been reduced to low wages and mistakes as contractors instead of employees, refusing access to safety in their overtime salary and sick days.
The scale AI cases have been strongly argued, saying that it fully obeyed the law and works to ensure that its pay rate meets the standard of living or surpasses the standard of living.
Scale AI’s International Labor Practices were also the subject of investigation Washington Post in 2023The Workers abroad described the post in the post demanding low wages as a contractor. The company said at the time that the pay rate was constantly improving.
The Department of Labor in the US Website It is said that in most cases it is capable of administratively resolved, but the law -abiding employers may be subject to fine and possible imprisonment. DOLO employers have the power to force their employees to be re -categorized as employees.
For example, in February 2021, Hotel Staffing Startup Kiwick provides $ 2.5m dollars and disposes a dole case and announces that all California workers will be classified as employees of the work workers using the Kiwick app, Bloomberg Law. ReportThe
The scale AI is also among the new presidential administration and Silicon Valley is also among the companies to visit. For example its CEO and founder Alexandra Wang, Present Donald Trump’s opening in January Like many other tech CEOs.
It is also said that Michael Cratesius, a former Managing Director of Scale AI, is the nominee of President Trump as the new director of the Science and Technology Policy Office of the White House. Craticis previously served as US chief technology officer during the first Trump administration.
In this position, Craticis will advise Trump on science and technology. There is no supervision of this position on the Labor Department. Cratesius was part of the Senate Hearing February 25, but not yet confirmed. Cratesius did not respond to any request for commenting.
The US Labor Department spokesman Michael Peterson told TechCrunch that it could not confirm or deny the existence of an investigation according to the long -term policy.
