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Prohibits the use of a wage-fixing algorithm in combination with personal or behavioral data to set or recommend wages or compensation; defines terms; establishes penalties for violations of such prohibition.
In one paragraph
New York's S 9132 would add Labor Law § 194-c barring an employer from using a wage-fixing algorithm, or its output, combined with personal or behavioral data to set or recommend wages or compensation, whether the data is collected by the employer or a third party. The Attorney General or a harmed worker could sue for the greater of actual damages or $3,000 per violation, with treble damages for willful or egregious violations. Referred to the Labor Committee February 5, 2026; it has not passed either chamber.
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 algorithmic pay-setting tools fed personal or behavioral data and would face Attorney General and worker lawsuits.
Key provisions
- Employers may not use a wage-fixing algorithm or its output with personal or behavioral data to set or recommend wages or compensation
- Tools whose inputs are limited to job requirements, performance (not customer reviews), qualifications, labor market conditions or local cost of living are excluded from the definition
- Attorney General may enforce by civil action for the greater of actual damages or $3,000, treble damages for willful or egregious violations, disgorgement of profits, attorneys' fees and costs, and other relief
- Labor Commissioner may issue rules and enforce under Labor Law § 218; any harmed individual or group may sue for an injunction and the same money relief except disgorgement
- Workers alleging a violation are protected from retaliation under § 215; employer must show by a preponderance of the evidence that pay differences were due only to lawful factors
- Takes effect on the thirtieth day after becoming law; Assembly same-as A9638
Latest legislative action
Feb 5, 2026. REFERRED TO LABOR
Sponsors
| Name | Role |
|---|---|
| Kristen Gonzalez D | Primary |
| KRUEGER | Primary |
| Luis R. Sepúlveda D | Primary |
| MANNION | 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