Town of San Francisco is investigating Scale AI over its labor practices, a Scale AI spokesperson confirmed to Enterprise Insider.Scale AI, which is predicated in San Francisco, depends closely on an unlimited military of individuals it considers contractors to coach tech firms’ newest synthetic intelligence fashions. Meta purchased nearly half of Scale AI for $14 billion in a blockbuster AI deal this summer time.Town’s investigation is being led by its Workplace of Labor Requirements Enforcement (OLSE), which oversees sick go away, minimal wage, extra time pay, and different rules for San Francisco staff.Scale AI spokesperson Natalia Montalvo advised Enterprise Insider that the startup is cooperating with the OLSE to offer the knowledge they want and that Scale AI is absolutely compliant with native legal guidelines and rules.San Francisco’s investigation into Scale AI is restricted to metropolis residents who labored for the startup — together with remotely — over the past three years, in response to a now-deleted discover posted by Maura Prendiville, a compliance officer on the OLSE, in a subreddit for Outlier AI, a gig work platform run by Scale AI.Whereas the discover did not specify what kinds of labor practices the town is investigating, it did point out that investigators need to communicate to individuals who labored for Scale AI as “taskers” and “freelancers” slightly than the startup’s full-time workers.The investigation’s existence does not imply Scale AI has damaged the legislation, and the town may discover it in favor of Scale AI — or drop its probe altogether.The OLSE declined to reply additional questions concerning the probe, citing its coverage of not commenting on ongoing investigations. The company has the authority to levy fines for labor violations.Within the Reddit put up, Prendiville specified that San Francisco is looking for to talk to individuals who labored for Scale AI by Outlier AI and Sensible Ecosystem, one other Scale AI platform. She additionally wrote that she seeks to talk with individuals who labored for Scale AI by HireArt, a third-party hiring company, and the gig work market Upwork.Upwork stated it has not been contacted by OLSE.
Associated tales
Enterprise Insider tells the revolutionary tales you need to know
Enterprise Insider tells the revolutionary tales you need to know
“Employee classification and compliance with labor rules are in the end the accountability of the hiring enterprise,” an Upwork spokesperson stated. “As a normal matter, Upwork doesn’t play a task in these determinations.”Montalvo, the Scale AI spokesperson, stated that the suggestions the corporate will get from its contributors is “overwhelmingly constructive.””Our devoted groups work arduous to make sure contributors are paid pretty, really feel supported, and may entry the versatile incomes alternatives they worth,” she stated.It isn’t the primary time Scale AI has been investigated by labor regulators. It was additionally the topic of a federal Division of Labor investigation that was dropped this summer time, TechCrunch reported.Some Scale AI staff have beforehand alleged that the corporate illegally underpaid them, denied them advantages like sick go away, and misclassified them as contractors in two lawsuits filed over the previous 12 months in San Francisco’s superior courtroom.Meta declined to remark. HireArt did not reply to a request for remark.Have a tip? Contact this reporter through e mail at crollet@insider.com or on Sign and WhatsApp at 628-282-2811. Use a private e mail handle, a nonwork WiFi community, and a nonwork gadget; this is our information to sharing info securely.
