The U.S. Department of Labor is investigating Scale AI, a data labeling startup, over compliance with the Fair Labor Standards Act. The ongoing investigation, active since August 2024, addresses concerns related to unpaid wages and misclassification of workers as contractors. Despite the scrutiny, Scale AI maintains strong relationships with regulators and asserts its operations offer flexible job opportunities. However, the company is also facing lawsuits from former workers alleging misclassification and underpayment, highlighting ongoing debates about labor practices in the gig economy.
The U.S. Department of Labor is investigating Scale AI for potential violations of the Fair Labor Standards Act, particularly concerning wage compliance and employee classification.
Scale AI spokesperson stated that the company has been transparent in its operations and believes it brings valuable flexible work opportunities to Americans.
Scale AI faces lawsuits from former workers who allege being underpaid and misclassified as contractors, challenging their access to overtime pay and benefits.
The investigation into Scale AI, ongoing since August 2024, is part of broader scrutiny into gig economy practices that may misclassify workers.
Collection
[
|
...
]