WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE
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)(a) "Wage-fixing algorithmWage-fixing algorithm"Wage-fixing algorithm" means a mathematical or computational process or methodology implementing a set of rules, including without limitation data collected and used in conjunction with any such processes or methodologies, to be followed in calculations, data processing, data mining, machine learning, pattern recognition, automated decision-making or problem-solving operations, including those that transform inputs into outputs, utilized for the purpose of setting or recommending wages or compensation for an individual or a class or group to whom an individual belongs. "Wage-fixing algorithm" shall not include any such tool whose inputs are limited to job requirements, job performance, qualifications, labor market conditions, or the cost of living in an applicable metropolitan statistical area, micropolitan statistical area, combined statistical area, county or county equivalent. For the purposes of this section, "job performance" shall not include customer reviews.Labor Law § 194-c(1)(a)" means a mathematical or computational process or methodology implementing a set of rules, including without limitation data collected and used in conjunction with any such processes or methodologies, to be followed in calculations, data processing, data mining, machine learning, pattern recognition, automated decision-making or problem-solving operations, including those that transform inputs into outputs, utilized for the purpose of setting or recommending wages or compensation for an individual or a class or group to whom an individual belongs. "Wage-fixing algorithmWage-fixing algorithm"Wage-fixing algorithm" means a mathematical or computational process or methodology implementing a set of rules, including without limitation data collected and used in conjunction with any such processes or methodologies, to be followed in calculations, data processing, data mining, machine learning, pattern recognition, automated decision-making or problem-solving operations, including those that transform inputs into outputs, utilized for the purpose of setting or recommending wages or compensation for an individual or a class or group to whom an individual belongs. "Wage-fixing algorithm" shall not include any such tool whose inputs are limited to job requirements, job performance, qualifications, labor market conditions, or the cost of living in an applicable metropolitan statistical area, micropolitan statistical area, combined statistical area, county or county equivalent. For the purposes of this section, "job performance" shall not include customer reviews.Labor Law § 194-c(1)(a)" shall not include any such tool whose inputs are limited to job requirements, job performance, qualifications, labor market conditions, or the cost of living in an applicable metropolitan statistical area, micropolitan statistical area, combined statistical area, county or county equivalent. For the purposes of this section, "job performance" shall not include customer reviews.
(1)(b) "Personal dataPersonal data"Personal data" means any data that identifies, relates to, describes, is reasonably capable of being associated with, or could be reasonably linked, directly or indirectly, with a particular person or device, including but not limited to: (i) name or alias, signature, social security number, postal address, telephone number, passport number, driver's license or state identification card number, insurance policy number, email address, Internet Protocol address, account name, or other similar identifiers; (ii) bank account number, credit card number, debit card number, credit score or credit history, financial circumstances, or any other financial information, medical information, or health insurance information; (iii) records of personal property, products or services purchased, obtained, or considered, or other purchasing or consuming histories or tendencies; (iv) personal, political, professional, or religious affiliations, memberships, relationships, or activities, or status, activity, or relationships within a social media network, or any other associations with a group, band, class, or tier of individuals to which the individual belongs; (v) internet or other electronic network activity information, including browsing history, search history, and information regarding a person's interaction with an internet website application or advertisement; (vi) characteristics of protected classifications under state or federal law, geolocation identifiers, physical descriptions or characteristics, genetic information, or biometric information; and (vii) inferences drawn from any of the information identified in this paragraph to create a profile about a person, or a class or group to which such person belongs, reflecting such person's preferences, characteristics, psychological trends, predispositions, behavior, attitudes, intelligence, abilities, and aptitudes. "Personal data" shall not include location data that is used by a for-hire vehicle as defined in section 19-502 of the administrative code of the city of New York or as otherwise defined in local law or rule, or a transportation network company vehicle as defined in section sixteen hundred ninety-one of the vehicle and traffic law, solely to calculate the fare based on mileage and trip duration between the passenger's pickup and drop-off locations.Labor Law § 194-c(1)(b)" means any data that identifies, relates to, describes, is reasonably capable of being associated with, or could be reasonably linked, directly or indirectly, with a particular person or device, including but not limited to: (i) name or alias, signature, social security number, postal address, telephone number, passport number, driver's license or state identification card number, insurance policy number, email address, Internet Protocol address, account name, or other similar identifiers; (ii) bank account number, credit card number, debit card number, credit score or credit history, financial circumstances, or any other financial information, medical information, or health insurance information; (iii) records of personal property, products or services purchased, obtained, or considered, or other purchasing or consuming histories or tendencies; (iv) personal, political, professional, or religious affiliations, memberships, relationships, or activities, or status, activity, or relationships within a social media network, or any other associations with a group, band, class, or tier of individuals to which the individual belongs; (v) internet or other electronic network activity information, including browsing history, search history, and information regarding a person's interaction with an internet website application or advertisement; (vi) characteristics of protected classifications under state or federal law, geolocation identifiers, physical descriptions or characteristics, genetic information, or biometric information; and (vii) inferences drawn from any of the information identified in this paragraph to create a profile about a person, or a class or group to which such person belongs, reflecting such person's preferences, characteristics, psychological trends, predispositions, behavior, attitudes, intelligence, abilities, and aptitudes. "Personal dataPersonal data"Personal data" means any data that identifies, relates to, describes, is reasonably capable of being associated with, or could be reasonably linked, directly or indirectly, with a particular person or device, including but not limited to: (i) name or alias, signature, social security number, postal address, telephone number, passport number, driver's license or state identification card number, insurance policy number, email address, Internet Protocol address, account name, or other similar identifiers; (ii) bank account number, credit card number, debit card number, credit score or credit history, financial circumstances, or any other financial information, medical information, or health insurance information; (iii) records of personal property, products or services purchased, obtained, or considered, or other purchasing or consuming histories or tendencies; (iv) personal, political, professional, or religious affiliations, memberships, relationships, or activities, or status, activity, or relationships within a social media network, or any other associations with a group, band, class, or tier of individuals to which the individual belongs; (v) internet or other electronic network activity information, including browsing history, search history, and information regarding a person's interaction with an internet website application or advertisement; (vi) characteristics of protected classifications under state or federal law, geolocation identifiers, physical descriptions or characteristics, genetic information, or biometric information; and (vii) inferences drawn from any of the information identified in this paragraph to create a profile about a person, or a class or group to which such person belongs, reflecting such person's preferences, characteristics, psychological trends, predispositions, behavior, attitudes, intelligence, abilities, and aptitudes. "Personal data" shall not include location data that is used by a for-hire vehicle as defined in section 19-502 of the administrative code of the city of New York or as otherwise defined in local law or rule, or a transportation network company vehicle as defined in section sixteen hundred ninety-one of the vehicle and traffic law, solely to calculate the fare based on mileage and trip duration between the passenger's pickup and drop-off locations.Labor Law § 194-c(1)(b)" shall not include location data that is used by a for-hire vehicle as defined in section 19-502 of the administrative code of the city of New York or as otherwise defined in local law or rule, or a transportation network company vehicle as defined in section sixteen hundred ninety-one of the vehicle and traffic law, solely to calculate the fare based on mileage and trip duration between the passenger's pickup and drop-off locations.
(1)(c) "Behavioral dataBehavioral data"Behavioral data" means an individual's observable or measurable actions, habits, preferences, interests, or vulnerabilities, including without limitation audio, visual, olfactory, thermal, and other sensory data, and inferences drawn from any such information to create a profile about a person, or a class or group to which such person belongs, reflecting such person's preferences, characteristics, psychological trends, predispositions, behavior, attitudes, intelligence, abilities, and aptitudes.Labor Law § 194-c(1)(c)" means an individual's observable or measurable actions, habits, preferences, interests, or vulnerabilities, including without limitation audio, visual, olfactory, thermal, and other sensory data, and inferences drawn from any such information to create a profile about a person, or a class or group to which such person belongs, reflecting such person's preferences, characteristics, psychological trends, predispositions, behavior, attitudes, intelligence, abilities, and aptitudes.
This subdivision establishes the three key defined terms for the bill: wage-fixing algorithm, personal data, and behavioral data. The wage-fixing algorithm definition is notably broad, reaching any computational process — including machine learning and automated decision-making — used for wage-setting or wage-recommendation. However, a significant carve-out exempts tools whose inputs are limited to traditional compensation factors: job requirements, job performance (explicitly excluding customer reviews), qualifications, labor market conditions, or geographic cost of living. Personal data and behavioral data are each defined expansively and include inferences and profiling data derived from primary inputs.
(2) 1 No employer shall utilize a wage-fixing algorithmWage-fixing algorithm"Wage-fixing algorithm" means a mathematical or computational process or methodology implementing a set of rules, including without limitation data collected and used in conjunction with any such processes or methodologies, to be followed in calculations, data processing, data mining, machine learning, pattern recognition, automated decision-making or problem-solving operations, including those that transform inputs into outputs, utilized for the purpose of setting or recommending wages or compensation for an individual or a class or group to whom an individual belongs. "Wage-fixing algorithm" shall not include any such tool whose inputs are limited to job requirements, job performance, qualifications, labor market conditions, or the cost of living in an applicable metropolitan statistical area, micropolitan statistical area, combined statistical area, county or county equivalent. For the purposes of this section, "job performance" shall not include customer reviews.Labor Law § 194-c(1)(a), or the output of a wage-fixing algorithmWage-fixing algorithm"Wage-fixing algorithm" means a mathematical or computational process or methodology implementing a set of rules, including without limitation data collected and used in conjunction with any such processes or methodologies, to be followed in calculations, data processing, data mining, machine learning, pattern recognition, automated decision-making or problem-solving operations, including those that transform inputs into outputs, utilized for the purpose of setting or recommending wages or compensation for an individual or a class or group to whom an individual belongs. "Wage-fixing algorithm" shall not include any such tool whose inputs are limited to job requirements, job performance, qualifications, labor market conditions, or the cost of living in an applicable metropolitan statistical area, micropolitan statistical area, combined statistical area, county or county equivalent. For the purposes of this section, "job performance" shall not include customer reviews.Labor Law § 194-c(1)(a), in combination with personal or behavioral dataBehavioral data"Behavioral data" means an individual's observable or measurable actions, habits, preferences, interests, or vulnerabilities, including without limitation audio, visual, olfactory, thermal, and other sensory data, and inferences drawn from any such information to create a profile about a person, or a class or group to which such person belongs, reflecting such person's preferences, characteristics, psychological trends, predispositions, behavior, attitudes, intelligence, abilities, and aptitudes.Labor Law § 194-c(1)(c), whether collected or processed by the employer or a third-party, to set or recommend wages or compensation.
This is the operative prohibition. It bars employers from using a wage-fixing algorithm — or the output of one — in combination with personal or behavioral data to set or recommend wages or compensation. The prohibition reaches both direct employer use and scenarios where the personal or behavioral data was collected or processed by a third party. The practical compliance question is whether the employer's compensation-setting toolchain ingests any personal or behavioral data alongside algorithmic wage recommendations; if so, the tool either must be redesigned to exclude such data or the employer must cease use.
(3) The commissioner may promulgate such rules and regulations as the commissioner deems necessary and proper to effectuate the purposes and provisions of this section.
This subdivision grants the Commissioner of Labor discretionary authority to promulgate rules and regulations to effectuate the purposes and provisions of the surveillance-wages prohibition. No specific rulemaking timeline or mandatory topics are prescribed — the authority is permissive rather than mandatory.
(4)(a) The attorney general may enforce the provisions of this section by civil action in any court of competent jurisdiction. Such action may seek to enjoin violations of this section and recover for each violation, and on behalf of any harmed worker: (i) actual damages or three thousand dollars, whichever is larger; (ii) treble damages, where such violation was willful or egregious; (iii) disgorgement of profits obtained directly or indirectly as a result of any violation of this section; (iv) attorneys' fees and costs; and (v) any other legal or equitable relief the court may deem just and proper.
(4)(b) The commissioner may enforce the provisions of this section in accordance with section two hundred eighteen of this chapter.
(4)(c) An individual or group of individuals who have been harmed by a violation of this section may bring in any court of competent jurisdiction a civil action to enjoin violations of this section and recover for each violation: (i) actual damages or three thousand dollars, whichever is larger; (ii) treble damages, where such violation was willful or egregious; (iii) attorneys' fees and costs; and (iv) any other legal or equitable relief the court may deem just and proper.
(4)(d) 2 An individual alleging a violation of this section shall be protected from retaliation pursuant to section two hundred fifteen of this chapter and any other applicable law.
(4)(e) In an action alleging a violation of this section, the burden shall rest with the employer to demonstrate, by a preponderance of the evidence, that a difference in wages or compensation was due only to lawful factors.
This subdivision establishes a three-track enforcement regime. The Attorney General may bring civil actions seeking injunctive relief, actual damages or $3,000 per violation (whichever is larger), treble damages for willful or egregious violations, disgorgement of profits, and attorney's fees. The Commissioner of Labor may enforce via administrative proceedings under Labor Law § 218. Harmed individuals may bring private civil actions seeking substantially the same remedies as AG actions, minus disgorgement. Employees alleging violations are protected from retaliation under Labor Law § 215. Notably, the burden of proof shifts to the employer to demonstrate by a preponderance of the evidence that any wage differential resulted only from lawful factors.
This act shall take effect on the thirtieth day after it shall have become a law.
The act takes effect on the thirtieth day after it becomes law. No staged implementation dates or delayed effective dates are provided.