The US Department of Labor (DOL) is investigating the degree of starting the data labeling he for compliance with the act of fair work standards, has learned Techcrunch.
This is a federal law that regulates outstanding salaries, badly classification of employees as contractors and illegal retaliation against workers.
The investigation has been active at least in August 2024, a first document by Techcrunch shows. And it is continuing, according to a person directly familiar with the matter.
The simple existence of an investigation does not mean that the scale he has done anything wrong, of course, and the investigation can find in favor of the company or be fired.
The scale is located in San Francisco and was rated last year at $ 13.8 billion. It relies on an army of workers that categorizes as contractors to do essential work of it, such as labeling images for large technology and other organizations.
He’s spokesman Joe Osborne told Techcrunch that the investigation was initiated during the previous presidential administration and that the scale he thought that construction of work, testing and evaluation was misunderstood by regulators then.
Osborne said that the scale he worked extensively with DOL to explain her business model and that the conversations were productive. In general, Osborne said that the scale he brings more “flexible work opportunities to him” for Americans than any other company and that reactions from its contributors are “extremely positive”.
“Hundreds of thousands of people use our platform to display their skills and earn extra money,” Osborne said.
The scale he is really a platform known for concert work. But recently it has faced legal challenges by some former workers over her work practices. Two lawsuits came up against the beginning – one in December 2024 and the other in January 2025 – by former workers claiming to be paid and badly classified as contractors instead of employees, denying them access to protection such as out -of -time payments and sick days.
The scale he has strongly discussed the lawsuits, saying that he fully complies with the law and works to ensure that her salary rates meet or exceed local standards of living wages.
International work practices of the scale of it were also the subject of an investigation by the Washington Post in 2023. Workers abroad described in the required low -paying job post as contractors. The company said at a time when pay rates were continuously improving.
The US Department’s website says it is able to solve most cases administratively, but that employers who violate the law may be subject to fines and imprisonment potentially. DOL also has the power to force employers to reclassify their employees as employees.
For example, in February 2024, the start of the hotel staff Qwick set a Del case by paying $ 2.1 million and announcing that all California workers who do the job using the QWICK app would be classified as employed, reported Law Bloomberg.
The scale he also seems to be one of the firms of Silicon Valley who seek and see favor with the new presidential administration. The Director General and its founder Alexandr Wang, for example, participated in the inauguration of Donald Trump in January like many other technology CEOs.
More stories, former managerial director Michael Kratsios, is President Trump’s nominee as a new director of the White House Science and Technology Office. Kratsios previously served as the main US technology official during the Trump’s first administration.
In this position, Kratsios will advise Trump on science and technology issues. This position has no supervision over the Labor Department. Kratsios was part of the Senate hearing on February 25, but has not yet been confirmed. Kratsios did not respond to a comment request.
US Labor Department spokesman Michael Peterssen told Techcrunch he cannot confirm or deny the existence of any investigation, for a long policy.
