The U.S. Department of Labor (DOL) has concluded its investigation into Scale AI's compliance with the Fair Labor Standards Act, which scrutinized worker misclassification as contractors. This decision comes after a prior investigation was reported in March, and it also encompasses Scale AI's HR partners, Upwork and Hireart, who are no longer under scrutiny. While the reasons for the DOL's cessation remain unclear, hints at more lenient contractor classifications and the company's relationship with the Trump administration might play a role in these developments.
The U.S. Department of Labor has dropped its investigation into Scale AI's compliance with the Fair Labor Standards Act, ending scrutiny over alleged worker misclassification.
Upwork and Hireart, two HR partners of Scale AI, are also no longer under investigation for FLSA compliance after initial scrutiny about their employee classification practices.
The DOL's recent shift may reflect a more lenient stance on classifying workers as contractors, highlighting possible regulatory changes from its previous policy.
Scale AI's leadership has sought closer ties with the Trump administration, potentially influencing the outcomes of investigations like that of the DOL.
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