Scale AI Cleared by U.S. Labor Department in FLSA Investigation

Scale AI Cleared by U.S. Labor Department in FLSA Investigation

Scale AI Cleared by Labor Department: What It Means for Workers and the AI Industry Wondering whether Scale AI is still under investigation by the U. S. Department of Labor? As of May 2025, the Department of Labor ( DOL) has officially dropped its investigation into Scale AI’s compliance with the Fair Labor Standards Act ( FLSA), ending months of scrutiny. Scale AI, a leading data labeling and artificial intelligence ( AI) firm valued at $ 13.8 billion, had faced allegations over misclassifying workers as independent contractors rather than employees, a violation that could impact pay rates, benefits, and job protections. With the case now closed, both businesses and gig workers are left wondering what this decision signals for the future of flexible work in the AI sector.                       Image Credits:Drew Angerer / Getty Images Why Was Scale AI Under Investigation? The DOL initiated its investigation after concerns surfaced around whether Scale AI had violated the FLSA, a key law that …