New York A 9641: Prohibits algorithmic wage-setting

Bill Text

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A09641 Summary:

BILL NOA09641 

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SAME ASSAME AS S08872

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SPONSORTorres

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COSPNSR

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MLTSPNSR

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Add Art 20-D §§750 - 755, Lab L

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Prohibits algorithmic wage-setting; provides for exceptions; provides for penalties for violation; creates a private right of action.

Go to top A09641 Actions:

BILL NOA09641 

&nbsp

01/21/2026referred to labor

Go to topA09641 Committee&nbspVotes:

Go to topA09641 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topA09641 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 9641

 IN ASSEMBLY

 January 21, 2026
 ___________

 Introduced by M. of A. TORRES -- read once and referred to the Committee
 on Labor

 AN ACT to amend the labor law, in relation to prohibiting algorithmic
 wage-setting

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. The labor law is amended by adding a new article 20-D to
 2 read as follows:
 3 ARTICLE 20-D
 4 ALGORITHMIC WAGE-SETTING
 5 Section 750. Definitions.
 6 751. Prohibition of algorithmic wage-setting.
 7 752. Publication of procedures.
 8 753. Rules and regulations.
 9 754. Application of other laws.
 10 755. Enforcement; civil penalties; private right of action.
 11 § 750. Definitions. For the purposes of this article, the following
 12 terms shall have the following meanings:
 13 1. "Automated decision system" means a system, software, or process
 14 that uses computation, the result of which is used to assist or replace
 15 human decision-making, including, but not limited to, a system, soft-
 16 ware, or process derived from machine learning, statistics, or other
 17 data processing or artificial intelligence techniques.
 18 2. "Algorithmic wage-setting" means using an automated decision system
 19 to inform individualized wages based on surveillance data regarding an
 20 employee, including but not limited to, the use of real-time data to
 21 automate workforce compensation structures, or to automate wage calcu-
 22 lations. "Algorithmic wage-setting" shall not include an employer's
 23 decision not to hire an individual who has not previously been an
 24 employee of such employer directly or through such employer's affiliates
 25 or subsidiaries.
 26 3. "Surveillance data" means data obtained through observation, infer-
 27 ence, or surveillance of an employee that is related to personal charac-

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD14419-02-6

 A. 9641 2

 1 teristics, behaviors, or biometrics of such employee, or a group, band,
 2 class, or tier in which such employee belongs.
 3 § 751. Prohibition of algorithmic wage-setting. 1. No employer shall
 4 engage in algorithmic wage-setting.
 5 2. An employer shall be deemed not to have engaged in algorithmic
 6 wage-setting otherwise prohibited pursuant to subdivision one of this
 7 section if such employer demonstrates that:
 8 (a) such employer offers individualized wages based solely on:
 9 (i) data specific to individual employees that is directly related to
 10 the tasks such employees are hired to perform; or
 11 (ii) differences in the cost to the employees of providing labor for
 12 such employer; and
 13 (b) such employer discloses in plain language before hiring employees
 14 to perform work, and to all employees whose wages are set in whole or in
 15 part through an automated decision system, what data is considered and
 16 how such automated decision system considers such data.
 17 § 752. Publication of procedures. Pursuant to procedures as shall be
 18 specified by the attorney general, an employer that uses an automated
 19 decision system to assist or replace human decision-making related to
 20 wages or prices, as authorized pursuant to subdivision two of section
 21 seven hundred fifty-one of this article, shall develop and publish
 22 reasonable procedures:
 23 1. to ensure the accuracy of all data considered by such automated
 24 decision system;
 25 2. to allow an employee to correct or challenge the accuracy of data
 26 considered by such automated decision system; and
 27 3. for employees to request and receive information regarding what
 28 data is considered