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Scale AI is being investigated by the US Department of Labor
Scale AI is being investigated by the U.S. Department of Labor for compliance with the Fair Labor Standards Act.
Two lawsuits were filed against the startup — one in December 2024 and the other in January 2025 — from former workers alleging they were underpaid and misclassified as contractors instead of employees, denying them access to protections like overtime pay and sick days. Scale AI has strongly disputed the lawsuits, saying that it fully complies with the law and works to ensure its pay rates meet or surpass local living wage standards. U.S. Department of Labor spokesperson Michael Petersen told TechCrunch that it cannot confirm or deny the existence of any investigation, per longstanding policy.
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