Billion-Dollar AI Startup Scale Under Labor Probe for Wage Violations
Summary
Scale AI, a $13.8 billion AI startup, is under investigation by the US Department of Labor for potential wage violations, including unpaid wages, misclassification of employees, and retaliation, amid legal challenges from former workers over labor practices.
Key Points
- Scale AI, a data-labeling startup valued at $13.8 billion, is being investigated by the US Department of Labor for potential violations of the Fair Labor Standards Act
- The investigation, which began in August 2024, is looking into issues such as unpaid wages, misclassification of employees as contractors, and illegal retaliation against workers
- Scale AI has faced legal challenges from former workers over labor practices, including lawsuits alleging underpayment and misclassification of contractors as employees