In one paragraph
New York's A 9641 would add Labor Law Article 20-D (§§ 750-755) providing that “no employer shall engage in algorithmic wage-setting,” meaning use of an automated decision system to inform individualized wages based on surveillance data about an employee. Civil penalties up to $10,000 per violation and a private right of action would apply. Referred to the Labor Committee January 21, 2026; it has not passed either chamber. Would take effect on the ninetieth day after it becomes law.
Plain-English summary, written with AI assistance. The official text controls.
What it means for business
None yet: the bill is pending. If enacted, employers could not use automated systems with surveillance data to set individual wages, absent the safe harbor, and would face penalties up to $10,000 per violation and employee lawsuits.
Key provisions
- “Algorithmic wage-setting”: using an automated decision system to inform individualized wages based on surveillance data about an employee; it does not include a decision not to hire a person who was not previously an employee
- Safe harbor: an employer is deemed not to engage in it if wages are based solely on data specific to the individual directly related to the tasks hired for, or differences in the cost to employees of providing labor, and it discloses in plain language before hiring what data is considered and how
- Employers using an automated decision system for wages must publish procedures to ensure data accuracy, let employees correct or challenge data, and let them request what data was considered and how
- The Attorney General must adopt implementing rules
- Civil penalty not to exceed $10,000 for each violation, paid to the General Fund
- Private right of action: greater of actual damages (with 8% prejudgment interest) or $3,000 per violation, or three times actual damages on clear and convincing evidence of bad faith or intentional violation; costs and attorney fees
- Would take effect on the ninetieth day after it becomes law; referred to Labor January 21, 2026; Senate same-as S8872
Latest legislative action
Jan 21, 2026. referred to labor
Sponsors
| Name | Role |
|---|---|
| Emerita Torres | Primary |
| GLICK | Primary |
| Kenneth Zebrowski | Primary |
| MAYER | Primary |
| STERN | Primary |
Topics and industries
Related topics
Affected industries
This page is general information, not legal advice. Summaries are AI-assisted and may contain errors; read the statute for the controlling text and talk to a lawyer about your situation. Full disclaimer · Report an error