Salary History

[sneza69]

What is the name of your state? CA

The company I was interviewing with asked to see my W2/1099 forms to better determine the compensation package that they would offer. For the past three years I have been working part time as a consultant and so my annual salary is not comparable to the current market value. When I at first refused to give them the information, I was told that this has raised a red flag withing HR that I was hiding something. After some time I did give them the information and in turn I think they used it against me. The offer I was presented with was way below the current market even though I was fully qualified for the position. Did they have the right to ask for such information?

 

[I AM ALWAYS LIABLE]

What is the name of your state? CA

The company I was interviewing with asked to see my W2/1099 forms to better determine the compensation package that they would offer. For the past three years I have been working part time as a consultant and so my annual salary is not comparable to the current market value. When I at first refused to give them the information, I was told that this has raised a red flag withing HR that I was hiding something. After some time I did give them the information and in turn I think they used it against me. The offer I was presented with was way below the current market even though I was fully qualified for the position. Did they have the right to ask for such information?

My response:

They had an absolute right to ask - - and you had a absolute right to refuse.

By giving the potential employer your income information you, in effect, negated all chance and hope to negotiate a salary. Once you gave in, there was no need to negotiate because they had all the information they needed, and you had no information from them as to what they had paid employees in the past. You should have asked for a mutual exchange of this information; i.e., "I'll show you mine if you show me yours."

You blew it.

IAAL

 

[hexeliebe]

Yes, you blew it big time.

Because when I hire programmers I use the same trick. If they refuse they get the job. Not because I give a damn about what they made before (I know what they are worth from their work) but because if they cave so easily on such a simple matter, how fast will they cave when they are offered money to give away code or trade secrets.

Next time tell them politely "Sorry, but unless your willing to show me the last three year's worth of balance sheets for this company I'm not ready to divulge that information. You're either going to have to make a fair offer based on what I bring to the table or I'll look for a company willing to compensate me fairly".

The walk.

 

[Beth3]

This is one of the few times I have to disagree with IAAL and hexeliebe, although there is certainly is no one right answer to this question. It all depends on who you're interviewing with.

Yes, the employer has the right to ask for verification of your wages/income level. Yes, you can refuse. By refusing, you will undoubtedly take yourself out of any further consideration for the position however. The best way to approach this is to provide the information and when you do, explain that because you've been doing consulting, your income level has been quite variable and consequently your annual income has been considerably below what you know the market value is for your skills and experience are. (a) You're cooperating with the employer's request and (b) you're politely letting them know a low-ball offer isn't going to cut it because you know better.

This employer was stupid to offer you a job below what the market dictates you and the job are worth. Even if you accept, you're going to be gone as soon as you find a job that will pay you what you're worth.

A candiate telling the employer, "I'll show you mine if you show me yours," is going to result in them showing him to the door. I have never thought or assumed that a candidate agreeing to verify their income was any indication whatsoever that they'd be willing to divulge proprietary information if hired.

 

[hexeliebe]

I don't see where you disagree with either IAAL or myself Beth. We're all basically saying the same thing...that the employer has the right to ask and the prospective employee has the right to refuse.

The point I think is disgusting on the part of the employer is that of asking for W-2s. That's none of their business and lazy on their part.

If they have a question about the validity of the rate this person is or was making, then that's a question they are perfectly allowed to ask when they call for references.

 

[Beth3]

But if he's doing independent consulting for a variety of entities, the only way they have to confirm his annual income is to ask for that as far as I can see. However I wouldn't have asked for those things however, as in this situation it's irrelevant. They should have offered him the salary that his experience and the position dictate and be done with it.

I agree that if the employer can verify salary with a former employer, they should do so (as candidates have been known to inflate their current salaries) rather than asking the ee to bring in their W-2 or 1099's.