Bill Text: NJ A5502 | 2026-2027 | Regular Session | Introduced
Bill Title: "Fair Wage Protection Act"; prohibits use of surveillance wage setting through use of wage setting algorithm.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-09-14 - Introduced, Referred to Assembly Science, Innovation and Technology Committee [A5502 Detail]
Download: New_Jersey-2026-A5502-Introduced.html
Sponsored by:
Assemblyman CHIGOZIE U. ONYEMA
District 28 (Essex and Union)
SYNOPSIS
"Fair Wage Protection Act"; prohibits use of surveillance wage setting through use of wage setting algorithm.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the use of personal data to set wages and supplementing Title 34 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the "Fair Wage Protection Act."
2. a. As used in this act:
"Biometrics" means data generated by automatic or technological processing, measurements, or analysis of an individual's biological, physical, or behavioral characteristics, including, but not limited to, fingerprint, voiceprint, eye retinas, irises, facial mapping, facial geometry, facial templates, and other unique biological, physical, or behavioral patterns or characteristics that are used or intended to be used, singularly or in combination with each other or with other personal data, to identify a specific individual. "Biometrics" shall not include: a digital or physical photograph; an audio or video recording; or any data generated from a digital or physical photograph, or an audio or video recording, unless such data is generated to identify a specific individual.
"Online behaviors" means an individual's actions, habits, preferences, affiliations, associations, financial circumstances, or interests that are observable, measurable, or inferred through digital, online, or electronic observation or surveillance of a worker, including associations with, similarities to, or differences from a group, band, class, or tier of other individuals.
"Personal characteristics" includes personal data, as defined in section 1 of P.L.2023, c.266 (C.56:8-166.4); sensitive data, as defined in section 1 of P.L.2023, c.266 (C.56:8-166.4); genetic information, as defined in subsection oo. of section 5 of P.L.1945, c.169 (C.10:5-5); and both mutable and immutable qualities, features, attributes, or traits of an individual.
"Substantial factor" means more than a de minimis or incidental factor that informs the wage offered to an individual.
"Surveillance data" means data obtained through observation, inference, or surveillance of a worker that is related to personal characteristics, online behaviors, or biometrics of the individual or a group, band, class, or tier to which the individual belongs. "Surveillance data" includes information gathered, purchased, or otherwise acquired.
"Surveillance wage setting" means using a wage setting algorithm or the output of a wage setting algorithm in determining a wage offered to a worker. "Surveillance wage setting" shall not include:
(1) a person's decision not to hire an individual who has not previously worked for or through the person or the person's affiliates or subsidiaries; and
(2) pay equity studies, compensation reviews or other activities necessary to comply with federal and State anti-discrimination and pay equity laws.
"Wage" or "wages" means compensation, wages, salaries, commissions, or any other form of remuneration paid to workers for their employment or services.
"Wage setting algorithm" means any technology, software, program, machine-based system, or computational process that:
(1) uses statistical modeling, data analytics, artificial intelligence, or other data processing techniques to analyze surveillance data; and
(2) is a substantial factor in setting, offering, or determining a wage offered to an individual.
"Worker" means any person performing work for wages and includes an employee and any other individual performing work on behalf or for the benefit of an employer or other person. "Worker" shall not include a worker engaged by the federal government, but shall include a worker engaged by the State and any county, municipality, or school district in the State, or any agency, authority, department, bureau, or instrumentality thereof.
b. (1) A person shall not engage in surveillance wage setting.
(2) A person has not engaged in surveillance wage setting if the person can demonstrate that:
(a) the person offers individualized wages based solely on data specific to the individual worker that is directly related to worker seniority or the tasks that the worker was hired to perform, including data associated with a worker's performance or generation of new business; and
(b) the person discloses in plain language before hiring a worker to perform work, and to all workers whose wages are set in whole or in part through a wage setting algorithm, what data is considered and how the wage setting algorithm considers the data.
c. To the extent the disclosures required under subsection b. of this section duplicate disclosures required under existing federal or State law, a person's obligation to disclose under this act shall be fulfilled by complying with all applicable existing laws.
3. If a worker whose wages
are set in whole or in part through a wage setting algorithm is already engaged
in work or services on the effective date of this act, then the person or
employer engaging the worker shall disclose the information required in
subsection b. of section 2 of this act within 60 days of the effective date of
this act.
4. Within 90 days of the effective date of this act, a person who uses a wage setting algorithm shall develop and publish procedures:
a. To ensure the accuracy of all data considered by the wage setting algorithm;
b. For workers to request and receive information regarding what data is considered by the wage setting algorithm and how the wage setting algorithm considers the data when setting particular wages; and
c. To allow a worker to correct or challenge the accuracy of data considered by the wage setting algorithm.
5. a. A person who violates the provisions of subsection b. of section 2 of this act or section 3 of this act shall be subject to a civil penalty of not more than $5,000 for each offense, collectible by the Commissioner of Labor and Workforce Development in a summary proceeding pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
b. A person who violates the provisions of section 4 of this act shall be subject to civil penalty of not more than $1,000 for each offense, collectible by the Commissioner of Labor and Workforce Development in a summary proceeding pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
6. This act is intended to affirm certain rights of workers under the circumstances specified in this act and shall not be construed as reducing, limiting, or curtailing any rights of any worker under any other provision of law.
7. This act shall take effect on the first day of the sixth month next following the date of enactment, except that the Commissioner of Labor and Workforce Development shall take any anticipatory administrative action as may be necessary to effectuate the provisions of this act.
STATEMENT
This bill establishes the "Fair Wage Protection Act." The bill prohibits a person, including but not limited to, an employer from engaging in surveillance wage setting. Under the bill, surveillance wage setting means using a wage setting algorithm or the output of a wage setting algorithm in determining a wage offered to a worker. Surveillance wage setting does not include:
(1) a person's decision not to hire an individual who has not previously worked for or through the person or the person's affiliates or subsidiaries; and
(2) pay equity studies, compensation reviews or other activities necessary to comply with federal and State anti-discrimination and pay equity laws.
The bill defines wage setting algorithm to mean any technology, software, program, machine-based system, or computational process that:
(1) uses statistical modeling, data analytics, artificial intelligence, or other data processing techniques to analyze surveillance data; and
(2) is a substantial factor in setting, offering, or determining a wage offered to an individual.
The bill provides for civil penalties for violations of its provisions.
