WHAT THIS BILL REGULATES · 3 REQUIREMENT TYPES
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
(1) "Automated decision systemAutomated decision system"Automated decision system" means a system, software, or process that uses computation, the result of which is used to assist or replace human decision-making, including, but not limited to, a system, software, or process derived from machine learning, statistics, or other data processing or artificial intelligence techniques.Labor Law § 750(1)" means a system, software, or process that uses computation, the result of which is used to assist or replace human decision-making, including, but not limited to, a system, software, or process derived from machine learning, statistics, or other data processing or artificial intelligence techniques.
(2) "Algorithmic wage-settingAlgorithmic wage-setting"Algorithmic wage-setting" means using an automated decision system to inform individualized wages based on surveillance data regarding an employee, including but not limited to, the use of real-time data to automate workforce compensation structures, or to automate wage calculations. "Algorithmic wage-setting" shall not include an employer's decision not to hire an individual who has not previously been an employee of such employer directly or through such employer's affiliates or subsidiaries.Labor Law § 750(2)" means using an automated decision systemAutomated decision system"Automated decision system" means a system, software, or process that uses computation, the result of which is used to assist or replace human decision-making, including, but not limited to, a system, software, or process derived from machine learning, statistics, or other data processing or artificial intelligence techniques.Labor Law § 750(1) to inform individualized wages based on surveillance dataSurveillance data"Surveillance data" means data obtained through observation, inference, or surveillance of an employee that is related to personal characteristics, behaviors, or biometrics of such employee, or a group, band, class, or tier in which such employee belongs.Labor Law § 750(3) regarding an employee, including but not limited to, the use of real-time data to automate workforce compensation structures, or to automate wage calculations. "Algorithmic wage-settingAlgorithmic wage-setting"Algorithmic wage-setting" means using an automated decision system to inform individualized wages based on surveillance data regarding an employee, including but not limited to, the use of real-time data to automate workforce compensation structures, or to automate wage calculations. "Algorithmic wage-setting" shall not include an employer's decision not to hire an individual who has not previously been an employee of such employer directly or through such employer's affiliates or subsidiaries.Labor Law § 750(2)" shall not include an employer's decision not to hire an individual who has not previously been an employee of such employer directly or through such employer's affiliates or subsidiaries.
(3) "Surveillance dataSurveillance data"Surveillance data" means data obtained through observation, inference, or surveillance of an employee that is related to personal characteristics, behaviors, or biometrics of such employee, or a group, band, class, or tier in which such employee belongs.Labor Law § 750(3)" means data obtained through observation, inference, or surveillance of an employee that is related to personal characteristics, behaviors, or biometrics of such employee, or a group, band, class, or tier in which such employee belongs.
Section 750 establishes the three defined terms on which the bill's operative provisions depend. Automated decision system is defined broadly to include any computational system that assists or replaces human decision-making, encompassing machine learning, statistics, and AI techniques. Algorithmic wage-setting is the core regulated practice: using such a system to set individualized wages based on surveillance data about an employee. The definition expressly carves out hiring decisions regarding individuals who have never been employees of the employer or its affiliates.
Surveillance data is defined to cover information obtained through observation, inference, or surveillance relating to an employee's personal characteristics, behaviors, or biometrics — including data about the group, band, class, or tier to which the employee belongs.
(1) 1 No employer shall engage in algorithmic wage-settingAlgorithmic wage-setting"Algorithmic wage-setting" means using an automated decision system to inform individualized wages based on surveillance data regarding an employee, including but not limited to, the use of real-time data to automate workforce compensation structures, or to automate wage calculations. "Algorithmic wage-setting" shall not include an employer's decision not to hire an individual who has not previously been an employee of such employer directly or through such employer's affiliates or subsidiaries.Labor Law § 750(2).
(2)(a)–(b) 2 An employer shall be deemed not to have engaged in algorithmic wage-settingAlgorithmic wage-setting"Algorithmic wage-setting" means using an automated decision system to inform individualized wages based on surveillance data regarding an employee, including but not limited to, the use of real-time data to automate workforce compensation structures, or to automate wage calculations. "Algorithmic wage-setting" shall not include an employer's decision not to hire an individual who has not previously been an employee of such employer directly or through such employer's affiliates or subsidiaries.Labor Law § 750(2) otherwise prohibited pursuant to subdivision one of this section if such employer demonstrates that: (a) such employer offers individualized wages based solely on: (i) data specific to individual employees that is directly related to the tasks such employees are hired to perform; or (ii) differences in the cost to the employees of providing labor for such employer; and (b) such employer discloses in plain language before hiring employees to perform work, and to all employees whose wages are set in whole or in part through an automated decision systemAutomated decision system"Automated decision system" means a system, software, or process that uses computation, the result of which is used to assist or replace human decision-making, including, but not limited to, a system, software, or process derived from machine learning, statistics, or other data processing or artificial intelligence techniques.Labor Law § 750(1), what data is considered and how such automated decision systemAutomated decision system"Automated decision system" means a system, software, or process that uses computation, the result of which is used to assist or replace human decision-making, including, but not limited to, a system, software, or process derived from machine learning, statistics, or other data processing or artificial intelligence techniques.Labor Law § 750(1) considers such data.
Section 751 establishes the bill's central prohibition: no employer may engage in algorithmic wage-setting. This is a categorical ban on using automated decision systems to set individualized wages based on surveillance data about employees.
The section provides an affirmative defense through which an employer may demonstrate that its use of an automated decision system is permissible. To qualify, the employer must satisfy two conjunctive requirements: the individualized wages must be based solely on task-related data or cost-of-labor differences, and the employer must disclose in plain language — both before hiring and to all affected employees — what data the system considers and how it uses that data. Both prongs must be met; disclosure alone does not immunize surveillance-data-based wage-setting.
3 Pursuant to procedures as shall be specified by the attorney general, an employer that uses an automated decision systemAutomated decision system"Automated decision system" means a system, software, or process that uses computation, the result of which is used to assist or replace human decision-making, including, but not limited to, a system, software, or process derived from machine learning, statistics, or other data processing or artificial intelligence techniques.Labor Law § 750(1) to assist or replace human decision-making related to wages or prices, as authorized pursuant to subdivision two of section seven hundred fifty-one of this article, shall develop and publish reasonable procedures: 1. to ensure the accuracy of all data considered by such automated decision systemAutomated decision system"Automated decision system" means a system, software, or process that uses computation, the result of which is used to assist or replace human decision-making, including, but not limited to, a system, software, or process derived from machine learning, statistics, or other data processing or artificial intelligence techniques.Labor Law § 750(1); 2. to allow an employee to correct or challenge the accuracy of data considered by such automated decision systemAutomated decision system"Automated decision system" means a system, software, or process that uses computation, the result of which is used to assist or replace human decision-making, including, but not limited to, a system, software, or process derived from machine learning, statistics, or other data processing or artificial intelligence techniques.Labor Law § 750(1); and 3. for employees to request and receive information regarding what data is considered and how automated decision-making considered such data when setting particular wages.
Section 752 imposes three distinct procedural obligations on employers that use automated decision systems for wage-setting under the safe harbor in § 751(2). These employers must develop and publish — pursuant to procedures specified by the Attorney General — reasonable procedures for ensuring data accuracy, enabling employee data correction or challenge, and responding to employee information requests about how the system set their particular wages.
This section effectively creates a secondary compliance layer: employers who satisfy the § 751(2) safe harbor must also maintain and publish these procedural safeguards, ensuring employees have meaningful access to and recourse regarding the data driving their compensation.
The attorney general shall adopt rules and regulations necessary for the implementation of the provisions of this article.
Section 753 delegates rulemaking authority to the Attorney General to adopt rules and regulations necessary for implementing the article. This is a standard delegation provision that does not impose compliance obligations on regulated employers.
The provisions of this article shall not supersede or invalidate any other laws of this state to the contrary.
Section 754 is a savings clause providing that the article does not supersede or invalidate any other New York law. This preserves existing labor, privacy, anti-discrimination, and other legal frameworks that may independently apply to algorithmic wage-setting practices.
(1)(a)–(c) An employer who violates any provision of this article shall be liable for a civil penalty not to exceed ten thousand dollars for each violation. A violation with respect to each employee shall constitute a separate violation. (b) Civil penalties collected pursuant to paragraph (a) of this subdivision shall be paid to the general fund of the state. (c) The attorney general may be awarded costs and attorney fees with respect to the prosecution of any violation pursuant to this section.
(2)(a)–(b) In addition to other remedies provided under law, a person aggrieved by a violation of this article may bring a civil action on behalf of themselves or a group of similarly situated persons to restrain further violations and to recover damages, costs, and reasonable attorney fees, including: (a) the greater of: (i) the amount of actual damages sustained, including prejudgment interest of eight percent per year from the date on which the claim accrued; or (ii) three thousand dollars for each violation of this article, with each violation of this article constituting a separate violation with respect to each employee; or (b) if it is established by clear and convincing evidence that the employer violating this article engaged in bad faith conduct or intentionally violated this article, three times the amount of actual damages sustained.
Section 755 establishes a dual enforcement framework. The Attorney General may impose civil penalties of up to $10,000 per violation, with each affected employee constituting a separate violation. Penalties are paid to the state general fund, and the Attorney General may recover costs and attorney fees.
Separately, any aggrieved person may bring a private civil action — individually or on behalf of similarly situated persons — seeking injunctive relief, damages, costs, and reasonable attorney fees. Private plaintiffs may recover the greater of actual damages (with 8% prejudgment interest) or $3,000 per violation per employee. Where clear and convincing evidence shows bad faith or intentional violation, treble actual damages are available.