On August 4, 2023, the New York legislature introduced Senate Bill 07623 (“S07623”), which would dramatically restrict employers’ ability to use both electronic monitoring and automated employment decision-making technology in the state. As currently written, S07623 would apply to all New York employers regardless of size, including an employer’s labor contractors. While S07623 is currently being reviewed by the Rules Committee and still must work its way through the legislative process, it is expected to pass in some form. Because S07623 would create significant new obligations and restrictions for New York employers, they should take note of its requirements and track its progress.

S07623, as currently written, would affect employers’ ability to use two types of tools: (i) electronic monitoring tools (“EMTs”); and (ii) automated employment decision tools (“AEDTs”). S07623’s proposed impact on each of these tools is summarized below.

Electronic Monitoring Tools (“EMTs”)

S07263 defines an EMT as “any system that facilitates the collection of data concerning worker activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectric, or photo-optical system.” This broad definition would include a number of commonly-used EMTs in the employment space, including email, keystroke and biometric monitoring. If passed, S07263 would make it unlawful for employers to use EMTs to “...

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