US Department of Labor drops investigation into Scale AI, TechCrunch reports

May 9 (Reuters) - The U.S. Department of Labor stopped its investigation into Scale AI's compliance with the Fair Labor Standards Act, TechCrunch reported on Friday, citing a source directly familiar with the matter.

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 did not immediately respond to a Reuters request for comment.

Founded in 2016, Scale AI is a data labeling startup backed by tech giants Nvidia NVDA.O, Amazon AMZN.O and Meta META.O.

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.