The Rise of Surveillance Wages

We already know algorithms influence which jobs you see, which resumes get reviewed and which candidates advance.

The next frontier may be your salary.

What Are Surveillance Wage Algorithms?

A surveillance wage algorithm uses data about an individual worker or job seeker to help determine how much that particular person might be willing to accept.

That’s different from an employer paying more for experience, specialized skills or a high-cost location.

Imagine two equally qualified candidates applying for the same fashion position. An algorithm determines Candidate A has numerous employment options. Candidate B has been unemployed for eight months, lives in an expensive ZIP code and appears—based on available data—to need a job quickly.

Instead of asking, “What is this job worth?” the technology could effectively ask:

“What is the lowest amount this person will accept?”

Where Did This Come From?

The concept grew largely from the gig economy, where platforms developed increasingly sophisticated systems for determining what individual drivers or workers would accept for particular assignments.

Fordham Law professor Zephyr Teachout used the term “surveillance wages” in 2022, later describing several forms of algorithmically personalized wages. UC Irvine law professor Veena Dubal has separately documented what she calls algorithmic wage discrimination in platform work.

The underlying technology is related to surveillance pricing—using personal and behavioral data to determine what an individual consumer might pay. The Federal Trade Commission has investigated systems capable of using information including location, demographics, browsing behavior and shopping activity to personalize consumer pricing, and has specifically sought information about potential effects on worker compensation.

Why Fashion Professionals Should Care

There is currently little evidence that surveillance wage algorithms are widespread in traditional salaried fashion employment.

But the ingredients increasingly exist: AI, enormous amounts of personal data, sophisticated compensation software and employers looking to control labor costs. Policymakers are already considering legislation specifically addressing algorithmic wage-setting.

For fashion professionals, the lesson is simple: don’t negotiate compensation based on what you need. Negotiate based on what the job is worth.

Research market compensation before interviewing. Ask for the employer’s salary range before giving your expectations. Avoid unnecessarily volunteering salary history, financial circumstances or how urgently you need the job.

Most importantly, know your market value through salary data, recruiters, colleagues and comparable job listings.

Technology may get increasingly sophisticated at calculating what you’ll accept.

Your job is to know what you’re worth.