Additionally, Scale AI's international labor practices were scrutinized in a 2023 Washington Post investigation, which highlighted low pay for overseas contractors. The DOL has the authority to impose fines and require worker reclassification if violations are found. Scale AI's CEO, Alexandr Wang, and former managing director, Michael Kratsios, have connections to the Trump administration, with Kratsios nominated for a key science and technology policy role. The DOL has not confirmed the investigation, adhering to its policy of non-disclosure.
Key takeaways:
- The U.S. Department of Labor is investigating Scale AI for compliance with the Fair Labor Standards Act, focusing on issues like unpaid wages and worker misclassification.
- Scale AI has faced legal challenges from former workers alleging underpayment and misclassification as contractors, with two lawsuits filed against the company in late 2024 and early 2025.
- Scale AI's international labor practices were previously scrutinized by the Washington Post, with reports of low pay for overseas contractors.
- Scale AI's former managing director, Michael Kratsios, has been nominated by President Trump for a key science and technology policy position, though this role does not oversee the Department of Labor.