US Department of Labor closes investigation into Scale AI
The offices of artificial intelligence tech company Scale AI in Montreal, Quebec, Canada April 7, 2024. REUTERS/Evan Buhler
The U.S. Department of Labor has closed its investigation into Scale AI's compliance with the Fair Labor Standards Act, a person familiar with the matter told Reuters on Friday.
The FLSA is a federal law that establishes minimum wage, overtime pay, recordkeeping and other labor norms.
The investigation was looking into Scale AI's compliance with fair pay practices and working conditions. It was initiated nearly a year ago under the former President Joe Biden's administration, the company had said in March.
Scale AI said it was "pleased with the update."
Founded in 2016, Scale AI is a data labeling startup backed by tech giants Nvidia, Amazon and Meta.
Scale AI, last valued at nearly $14 billion, also provides a platform for researchers to exchange AI-related information, with contributors in more than 9,000 cities and towns.
TechCrunch reported the development earlier in the day. (This story has been refiled to fix a typo in paragraph 7)
