The Department of Labor just dropped its investigation into Scale AI

According to a source directly familiar with this topic, the US Labor Department has dropped the investigation with the Fair Labor Standards Act with the consent of the scale AI.

FLSA is a federal law that controls the wrong classification of staff as a distinct contractor and unpaid wage. TechCrunch first reported The scale was subject to this national investigation In March

Upwork and Hireart, Scale AI’s HR partners who were also investigated for FLSA consent Per Inc. MagazineNo longer being investigated by the DOL, they have confirmed the TechCrunch.

Scale AI, which Last year was worth $ 13.8 billion dollarsIt depends on an army of workers who have classified as a contractor to work critical AIs such as labeling images for big technology.

The scale, however Has been sued Former staff complains that they were low -pay and incorrectly classified as contractors instead of employees, denied access to facilities like sick holidays.

It is not clear why the Doll has dropped the investigation. San Francisco-based scale AI has refused to comment, while DOL does not respond to any request for commenting.

Although there are several possible reasons.

Including agencies, hints of recent steps from Doll for a friendly approach to classification as contractors Announced May 1 It is no longer applying, at least a biden era rule that has made it more difficult.

The scale AI is also seeking grace for the Trump administration. The CEO of Alexandra Wang Present Trump’s opening (Like) And have Has published a letter by requesting Trump “To win the AI ​​war”.

Meanwhile, Michael Craticius, a former managing director of Scale AI Confirmed As the new director of the Science and Technology Policy Office in the White House in March.

In this position, the President is involved in advice on science and technology and there is no monitoring of the DOL. Cratesius did not immediately respond to any request for the comment.