NY State Senate Bill 2025-S8872

Current Bill Status - In Senate Committee Labor Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 13, 2026	referred to labor

2025-S8872 (ACTIVE) - Details

Current Committee:: Senate Labor
Law Section:: Labor Law
Laws Affected:: Add Art 20-D §§750 - 755, Lab L

2025-S8872 (ACTIVE) - Summary

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

2025-S8872 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8872

SPONSOR: MAY
 
TITLE OF BILL:

An act to amend the labor law, in relation to prohibiting algorithmic
wage-setting

 
PURPOSE OR GENERAL IDEA OF BILL:

To prohibit the use of unfair and non-transparent algorithmic tools in
setting wages

 
SUMMARY OF PROVISIONS:

Section 1 adds a new article 20-D to the labor law banning the use of
algorithmic wage- , setting and defining the terms "automated decision
system", "algorithmic wage-setting", and "surveillance data".

The bill describes how employers can demonstrate they are in fact using
individualized and transparent means of determining wages. It directs
the Attorney General to develop and publish procedures ensuring the

accuracy of all data considered by employers who use automated decision
systems, as currently permitted under law. The bill provides that an
employee may correct or challenge the accuracy of data considered by
such automated decision system through a private right of action.

The bill sets a civil penalty of up ten thousand dollars per violation
for any employer found to have violated the provisions of this act and
grants the Attorney General fees for the prosecution of any violation of
this act.

Section 2 sets the effective date

 
JUSTIFICATION:

The concept of equal pay for equal work and transparency in wage setting
is the basis of fairness in our labor market. Algorithmic wage pricing
is a process increasingly being used by companies to drive down wages
for all, using new technology to determine the lowest possible price
individual workers will take to do a specific job that undermines the
concept of equal pay for equal work. This practice has been seen in
industries from ride sharing to nursing.

By instituting this legislation, we can ensure fairness and transparency
in wage setting and get ahead of emerging trends in wage setting.

 
PRIOR LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None

 
EFFECTIVE DATE:
90th day after in becomes law, with provisions effective immediately for
amending or repealing needed regulations

2025-S8872 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8872
 
                             I N  S E N A T E
 
                             January 13, 2026
                                ___________
 
 Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
   printed to be committed 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

 S. 8872                             2
 
 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
 S. 8872                             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.

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Senate Bill S8872

Sponsored By

Current Bill Status - In Senate Committee Labor Committee

Actions

2025-S8872 (ACTIVE) - Details

2025-S8872 (ACTIVE) - Summary

2025-S8872 (ACTIVE) - Sponsor Memo

2025-S8872 (ACTIVE) - Bill Text download pdf

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Sponsored By

Rachel May

Current Bill Status - In Senate Committee Labor Committee

Actions

2025-S8872 (ACTIVE) - Details

2025-S8872 (ACTIVE) - Summary

2025-S8872 (ACTIVE) - Sponsor Memo

2025-S8872 (ACTIVE) - Bill Text download pdf

Comments