In one paragraph
New York's S 8872 would add Labor Law Article 20-D (§§ 750-755) stating that no employer shall engage in algorithmic wage-setting, meaning using an automated decision system to inform individualized wages based on surveillance data about an employee. An employer is not deemed in violation if wages rest solely on task-related employee data or differences in labor cost and the employer discloses what data is used before hiring. Civil penalties up to $10,000 per violation; a private right of action. Referred to Labor January 13, 2026.
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 AI-driven systems to set individualized wages from surveillance data except within the safe harbor, with penalties and lawsuits possible.
Key provisions
- Prohibition (§ 751): "no employer shall engage in algorithmic wage-setting"; excludes a decision not to hire someone who was not previously an employee
- Safe harbor: individualized wages based solely on employee-specific data directly related to the tasks hired for or differences in the cost to employees of providing labor, plus plain-language disclosure before hiring of what data is considered and how
- § 752: employers using automated decision systems on wages must publish procedures, as specified by the Attorney General, to ensure data accuracy, let employees correct or challenge data and request what data was used
- Attorney General enforces: civil penalty not to exceed $10,000 per violation, each employee a separate violation, plus costs and fees; penalties go to the General Fund
- Private right of action: injunction and the greater of actual damages plus 8% prejudgment interest or $3,000 per violation, or treble actual damages on clear and convincing evidence of bad faith or intentional violation, plus attorney fees
- Would take effect on the ninetieth day after becoming law; Assembly version A9641; no threshold on employer size is stated
Latest legislative action
Jan 13, 2026. referred to labor
Sponsors
| Name | Role |
|---|---|
| Andrew Gounardes D | Primary |
| AVELLA | Primary |
| HOYLMAN | Primary |
| Rachel May D | Primary |
| WEIK | 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