The U.S. Department of Labor has officially wrapped up its inquiry into Scale AI’s compliance with the Fair Labor Standards Act (FLSA), according to a source familiar with the matter.
The federal probe, launched nearly a year ago, focused on the company’s wage policies, overtime pay, and labor conditions under the FLSA, which governs key labor standards including minimum wage and recordkeeping. Scale AI had previously confirmed the existence of the investigation earlier this year.
In response to the closure, a company spokesperson stated that Scale AI is “pleased with the update,” signaling that no further action will be taken by the department.
Founded in 2016, San Francisco-based Scale AI specializes in data labeling for artificial intelligence development. The company is backed by major industry players such as Nvidia, Amazon, and Meta. Most recently valued at close to $14 billion, Scale AI also operates a collaborative platform that supports AI research efforts, engaging contributors from thousands of cities worldwide.
The conclusion of the Labor Department’s investigation removes a potential cloud over the company as it continues to scale its operations and deepen partnerships within the tech ecosystem.
