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