MarketWatch looks at "surveillance wages," pay rates "based not on an employee's performance or seniority, but on formulas that use their personal data, often collected without employees' knowledge."
According to Nina DiSalvo, policy director at labor advocacy group Towards Justice, some systems use signals associated with financial vulnerability — including data on whether a prospective employee has taken out a payday loan or has a high credit-card balance — to infer the lowest pay a candidate might accept. Companies can also scrape candidates' public personal social-media pages, she said...
A first-of-its-kind audit of 500 labor-management artificial-intelligence companies by Veena Dubal, a law professor at University of California, Irvine, and Wilneida Negrón, a tech strategist, found that employers in the healthcare, customer service, logistics and retail industries are customers of vendors whose tools are designed to enable this practice. Published by the Washington Center for Equitable Growth, a progressive economic think tank, the August 2025 report... does not claim that all employers using these systems engage in algorithmic wage surveillance. Instead, it warns that the growing use of algorithmic tools to analyze workers' personal data can enable pay practices that prioritize cost-cutting over transparency or fairness...
Surveillance wages don't stop at the hiring stage — they follow workers onto the job, too. The vendors that provide such services also offer tools that are built to set bonus or incentive compensation, according to the report. These tools track their productivity, customer interactions and real-time behavior — including, in some cases, audio and video surveillance on the job. Nearly 70% of companies with more than 500 employees were already using employee-monitoring systems in 2022, such as software that monitors computer activity, according to a survey from the International Data Corporation. "The data that they have about you may allow an algorithmic decision system to make assumptions about how much, how big of an incentive, they need to give to a particular worker to generate the behavioral response they seek," DiSalvo said.
The article notes that Colorado introduced the "Prohibit Surveillance Data to Set Prices and Wages Act" to ban companies from setting pay rates with algorithms that use payday-loan history, location data or Google search behavior for algorithmically set.
Thanks to long-time Slashdot reader sinij for sharing the article.
According to Nina DiSalvo, policy director at labor advocacy group Towards Justice, some systems use signals associated with financial vulnerability — including data on whether a prospective employee has taken out a payday loan or has a high credit-card balance — to infer the lowest pay a candidate might accept. Companies can also scrape candidates' public personal social-media pages, she said...
A first-of-its-kind audit of 500 labor-management artificial-intelligence companies by Veena Dubal, a law professor at University of California, Irvine, and Wilneida Negrón, a tech strategist, found that employers in the healthcare, customer service, logistics and retail industries are customers of vendors whose tools are designed to enable this practice. Published by the Washington Center for Equitable Growth, a progressive economic think tank, the August 2025 report... does not claim that all employers using these systems engage in algorithmic wage surveillance. Instead, it warns that the growing use of algorithmic tools to analyze workers' personal data can enable pay practices that prioritize cost-cutting over transparency or fairness...
Surveillance wages don't stop at the hiring stage — they follow workers onto the job, too. The vendors that provide such services also offer tools that are built to set bonus or incentive compensation, according to the report. These tools track their productivity, customer interactions and real-time behavior — including, in some cases, audio and video surveillance on the job. Nearly 70% of companies with more than 500 employees were already using employee-monitoring systems in 2022, such as software that monitors computer activity, according to a survey from the International Data Corporation. "The data that they have about you may allow an algorithmic decision system to make assumptions about how much, how big of an incentive, they need to give to a particular worker to generate the behavioral response they seek," DiSalvo said.
The article notes that Colorado introduced the "Prohibit Surveillance Data to Set Prices and Wages Act" to ban companies from setting pay rates with algorithms that use payday-loan history, location data or Google search behavior for algorithmically set.
Thanks to long-time Slashdot reader sinij for sharing the article.
Read more of this story at Slashdot.
