The Department of Work has just abandoned the investigation in the AI ​​Scale case

The United States Department of Work abandoned his investigation into the compliance of AI with the Act on fair work (FLSA), in response to the source directly knowing this case.

FLSA is a federal law that regulates incorrect classification of employees as independent contractors and unpaid wages. TechCrunch informed for the first time that the scale was the subject of such an investigation in March.

Upwork and Hireart, two HR Scale AI partners who were also examined in terms of FLSA compliance Per inc. MagazineThey are now not examined by dollars, each of them confirmed TechCrunch.

The AI ​​scale, which was valued last yr at $ 13.8 billion, depends on the army of employees, which it categorizes as contractors to perform critical works of artificial intelligence, reminiscent of photo labeling for Big Tech.

However, there have been employees who claim that they weren’t paid and incorrectly classified as contractors as a substitute of employees, refusing them to access advantages reminiscent of sick leave.

It is not clear why Dol dropped the probe.

The AI ​​scale based in San Francisco refused to comment. -Ai Scale confirmed this message after publication, and spokesman Joe Osborne told Techcrunch that he was satisfied with the Dol’s decision:

“We are satisfied with this update,” said Osborne. “Creating new forms of work in artificial intelligence is essential for America’s economic growth and we are proud of the flexible possibilities of making money on our platforms.”

Dol didn’t answer the request for comment.

There are several possible the reason why Dols dropped the probe.

A recent transition from Dols indicates a more friendly approach to worker classification as contractors, with an agency Advertisement on May 1 That it was now not enforced, at least for now the principle of Biden, which hindered it.

Scale AI is also looking for the favor of the Trump administration. Its general director Alexandr Wang attended The inauguration of Trump (like many other general directors) and published a letter encouraging Trump to “win the AI ​​war”.

Meanwhile, the managing director of Scale AI, Michael Katsios, could be confirmed In March as a recent director of the White Home Science and Technology Policy Office.

The position includes advising the President on scientific and technological issues and there is no supervision over dollars. Kitsios didn’t answer immediately at the request for comment.