Assembly Bill A9641

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9641
 
                           I N  A S S E M B L Y
 
                             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:
 
   Section  1.  The  labor law is amended by adding a new article 20-D to
 read as follows:
                               ARTICLE 20-D
                         ALGORITHMIC WAGE-SETTING
 SECTION 750. DEFINITIONS.
         751. PROHIBITION OF ALGORITHMIC WAGE-SETTING.
         752. PUBLICATION OF PROCEDURES.
         753. RULES AND REGULATIONS.
         754. APPLICATION OF OTHER LAWS.
         755. ENFORCEMENT; CIVIL PENALTIES; PRIVATE RIGHT OF ACTION.
   § 750. DEFINITIONS. FOR THE PURPOSES OF THIS  ARTICLE,  THE  FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1.  "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, SOFT-
 WARE, OR PROCESS DERIVED FROM MACHINE  LEARNING,  STATISTICS,  OR  OTHER
 DATA PROCESSING OR ARTIFICIAL INTELLIGENCE TECHNIQUES.
   2. "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 CALCU-
 LATIONS. "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.
   3. "SURVEILLANCE DATA" MEANS DATA OBTAINED THROUGH OBSERVATION, INFER-
 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
              

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 TERISTICS, BEHAVIORS, OR BIOMETRICS OF SUCH EMPLOYEE, OR A GROUP,  BAND,
 CLASS, OR TIER IN WHICH SUCH EMPLOYEE BELONGS.
   §  751.  PROHIBITION OF ALGORITHMIC WAGE-SETTING. 1. NO EMPLOYER SHALL
 ENGAGE IN ALGORITHMIC WAGE-SETTING.
   2. AN EMPLOYER SHALL BE DEEMED NOT  TO  HAVE  ENGAGED  IN  ALGORITHMIC
 WAGE-SETTING  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 SYSTEM, WHAT DATA IS CONSIDERED AND
 HOW SUCH AUTOMATED DECISION SYSTEM CONSIDERS SUCH DATA.
   § 752. PUBLICATION OF PROCEDURES. PURSUANT TO PROCEDURES AS  SHALL  BE
 SPECIFIED  BY  THE  ATTORNEY GENERAL, AN EMPLOYER THAT USES AN AUTOMATED
 DECISION SYSTEM 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 SYSTEM;
   2. TO ALLOW AN EMPLOYEE TO CORRECT OR CHALLENGE THE ACCURACY  OF  DATA
 CONSIDERED BY SUCH AUTOMATED DECISION SYSTEM; 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.
   §  753.  RULES AND REGULATIONS. THE ATTORNEY GENERAL SHALL ADOPT RULES
 AND REGULATIONS NECESSARY FOR THE IMPLEMENTATION OF  THE  PROVISIONS  OF
 THIS ARTICLE.
   § 754. APPLICATION OF OTHER LAWS. THE PROVISIONS OF THIS ARTICLE SHALL
 NOT  SUPERSEDE OR INVALIDATE ANY OTHER LAWS OF THIS STATE TO THE CONTRA-
 RY.
   § 755. ENFORCEMENT; CIVIL PENALTIES; PRIVATE RIGHT OF ACTION.  1.  (A)
 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 SUBDI-
 VISION 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.  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  REASON-
 ABLE 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
 A. 9641                             3
 
   (B)  IF  IT  IS  ESTABLISHED BY CLEAR AND CONVINCING EVIDENCE THAT THE
 EMPLOYER VIOLATING THIS ARTICLE ENGAGED IN BAD FAITH CONDUCT  OR  INTEN-
 TIONALLY VIOLATED THIS ARTICLE, THREE TIMES THE AMOUNT OF ACTUAL DAMAGES
 SUSTAINED.
   §  2.  This  act shall take effect on the ninetieth day after it shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal of any rule or regulation necessary  for  the  implementation  of
 this  act  on its effective date are authorized to be made and completed
 on or before such effective date.