The US Department of Labor has reduced its research on AI scale compliance with the law on fair labor standards (FLSA), according to a source immediately familiar with the issue.
FLSA is a federal law that regulates the incorrect classification of employees as independent contractors and unpaid wages. TechCrunch said for the first time that the scale was the subject of such a study in March.
Upwork and Hireart, AI’s two HR partners also explored for FLSA compliance Per Inc. MagazineThey are also no longer investigated by DOL, they confirmed each one in TechCrunch.
The AI scale, estimated at $ 13.8 billion last year, depends on an army of workers who categorizes as contractors to do critical AI work, such as highlighting the Big Tech.
However, the scale has been set by former employees who claim that they have not been paid and are incorrectly classified as contractors instead of employees, refusing access to benefits such as sick leave.
It’s not clear exactly why Dol threw the detector.
The AI scale based on San Francisco refused to comment. Updated on 9 May 2025 -The Scale AI confirmed this news publication, with spokesman Joe Osborne saying TechCrunch that he is happy with Dol’s decision:
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“We are happy with this update,” Osborne said. “The creation of new forms of work in AI is vital to America’s economic growth and we are proud of the flexible profit opportunities offered through our platforms.”
Dol did not respond to a request for comments.
There are several possible reasons why Dol threw the detector.
A recent DOL move hints at a more friendly approach to classifying employees as contractors, with the organization Announcing May 1 That it no longer imposes, at least for the time being, a Biden era rule that made it harder.
Scale AI also seeks favorable with Trump’s administration. Alexandr Wang Managing Director watch The inauguration of Trump (like many other CEOS technicians) and published a letter urging Trump to “win the AI war”.
Meanwhile, former CEO of Scale Ai Michael Kratsios was confirmed In March as the new director of the White House Science and Technological Policy Office.
The post involves the advisory to the president on science and technology issues and has no supervision for DOL. Kratos did not immediately respond to a request for comments.
