Firms use personal data to cut wages

Much like “surveillance pricing” targeting consumers, companies are increasingly utilizing “surveillance wages” to dictate worker pay.

Instead of factoring in performance or seniority, algorithmic systems analyze prospective employees’ personal data to infer the lowest possible wage an individual might accept. Details they look into include payday loan histories, high credit card balances, or social media activity.

A 2025 report on 500 labor-management AI companies found that employers across healthcare, customer service, logistics, and retail use these tools.

Meanwhile, a 2022 survey showed that nearly 70% of companies with more than 500 employees used monitoring software to track productivity and adjust incentive compensation.

Labor advocates warn that surveillance wages disproportionately penalize financially vulnerable workers.