The United States Department of Labor (DOL) is investigating Scale AI for compliance with the fair labor standards act.

This law addresses issues such as unpaid wages, worker misclassification, and retaliation against employees.

The probe, active since at least August 2024, does not imply wrongdoing, and its outcome may favor Scale AI or be dismissed, according to a source.

Scale AI faces lawsuits from former workers claiming misclassification as contractors, which denied them benefits like overtime pay and sick leave.

A Scale AI spokesperson emphasized that the company has been engaging with regulators to clarify its business practices.

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