NY S08872: Prohibits algorithmic wage-setting; provides for exceptions; provides for penalties for violation; creates a private right of action.
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This bill prohibits algorithmic wage-setting for employers with 50 or more employees in New York, includes specific exceptions, penalties, and a private right of action.
If you use algorithms for wage-setting in New York, you must comply with this bill or face penalties.
State
New York
Bill Number
S08872
Status
Introduced
Risk Level
Medium
Category
Narrow/Targeted
Last Action
Jan 13, 2026
Last Verified
May 4, 2026
Data Updated
May 4, 2026
What do these statuses mean?▼
Introduced— Filed in the legislature; not yet heard in committee
In Committee— Assigned to and being reviewed by a legislative committee
Passed— Approved by one or both chambers; awaiting further action
Signed / Enacted— Signed into law by the governor; may or may not be in effect yet
Dead / Vetoed— Vetoed, failed to pass, or session expired without action
Unknown— Status data not yet available or awaiting classification
Affected Industries
FinanceGeneralTechnologyHuman Resources
What This Means
The proposed legislation in New York aims to prohibit the use of algorithms for setting wages for employers with 50 or more employees, with provisions for exceptions, penalties, and a private right of action included.
Key Provisions
Prohibits algorithmic wage-setting for employers with 50 or more employees.
Provides for specific exceptions such as compliance with federal or state laws.
Establishes penalties for violations, including fines up to $10,000 per infraction.
Creates a private right of action for affected employees.
Latest Legislative Action
REFERRED TO LABOR
Bill Sponsors
Name
Role
Andrew GounardesD
Primary
AVELLA
Primary
HOYLMAN
Primary
Rachel MayD
Primary
WEIK
Primary
Compliance Checklist
Cease algorithmic wage-setting practices unless exempted. Who: Employers using algorithms for wage determination. Penalty: Penalties for non-compliance as specified in the bill.
Review and adjust wage-setting processes for compliance. Who: HR and payroll departments. Penalty: Potential legal action from employees.
The bill seeks to prohibit the use of algorithmic wage-setting, which involves using automated systems to determine employee compensation, for employers with 50 or more employees. Specific exceptions include cases where algorithms are used for compliance with federal or state laws. Penalties for violations can include fines up to $10,000 per infraction. The criteria for a private right of action allow employees to sue if they are adversely affected by algorithmic wage-setting practices that violate the bill's provisions.
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