The US Department of Labor (DOL) is investigating the start of AI data labeling to comply with the law on fair labor standards, TechCrunch has learned.
This is a federal law that regulates non -paid salaries, the incorrect classification of employees as contractors and illegal retaliation against workers.
The research was active from at least in August 2024, a document observed by TechCrunch. And continues, according to a person who is immediately familiar with the subject.
Simple research does not mean that the AI scale has done something wrong, of course, and the research could find in favor of the company or be rejected.
Scale AI is based in San Francisco and was estimated at $ 13.8 billion last year. It is based on an army of workers who categorizes as contractors to do essential AI work, such as highlighting images of great technology and other organizations.
AI spokesman Joe Osborne told TechCrunch that the investigation began during the previous presidential administration and that the AI scale considered that the construction of work, control and evaluation were then misunderstood by the regulatory authorities.
Osborne said the AI scale has worked extensively with DOL to explain its business model and that the conversations were productive. In general, Osborne said the AI scale brings more “flexible job opportunities to AI” to Americans than any other company and that feedback from its contributors is “overwhelmingly positive”.
“Hundreds of thousands of people use our platform to present their skills and make extra money,” Osborne said.
Scale AI is indeed a popular work platform. But she recently faced legal challenges by some former workers in her work practices. Two lawsuits were filed against the start – one in December 2024 and the other in January 2025 – by former employees who claim to have been undervalued and incorrectly classified as contractors instead of employees, refusing to access protections such as overtime fees and patients.
The AI scale has strongly questioned the lawsuits, saying that it is fully complying with the law and working to ensure that its remuneration rates respond or exceed local wages.
AI’s international work practices have also been the subject of research from Washington Post 2023. Abroad workers described in the post -demanding work at low pay as contractors. The company then reported that fees were constantly improved.
The US Department of Labor website He says he is able to resolve most cases administratively, but that employers who violate the law may be subject to fines and possibly imprisonment. Dol also has the power to force employers to rebuild their employees as employees.
For example, in February 2024, the start of Qwick hotel staff installed a DOL case by paying $ 2.1 million and announcing that all California workers who perform work using the Qwick app will be classified as employees, Bloomberg Law referenced.
The AI scale also seems to be among Silicon Valley companies seeking and seeing favor with the new presidential administration. The CEO and the founder of Alexandr Wang, for example, watch The inauguration of Donald Trump in January, like many other CEOS technicians.
More narrative, former CEO of Scale AI, Michael Kratsios, is President Trump’s candidate as a new director of the White House Science and Technological Policy Office. Kratos previously served as US technology head during Trump’s first administration.
In this position, Cratus will advise Trump on science and technology. This position is not supervised in the work department. The Cratus was part of a Senate hearing February 25, but has not yet been confirmed. Cratus did not respond to a request for comments.
US Department of Labor spokesman Michael Petersen told TechCrunch that he could not confirm or refuse any investigation, per long -term policy.
