• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Privacy of Payroll Records

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

P

pleaseadviseme

Junior Member
What is the name of your state? IL

I'm the CEO of a small closely held S Corporation and I have a shareholder who is demanding to inspect the payroll records of all employees and officers including copies of the employee W-2's which of course would show social security numbers and other personal information. The shareholder refuses to sign any form of confidentiality agreement. My concern is that by releasing this information without a signed confidentiality agreement we may be violating an employees privacy. Does anyone know of any laws that protect or restict access into this information by shareholders?
 


S

seniorjudge

Senior Member
pleaseadviseme said:
What is the name of your state? IL

I'm the CEO of a small closely held S Corporation and I have a shareholder who is demanding to inspect the payroll records of all employees and officers including copies of the employee W-2's which of course would show social security numbers and other personal information. The shareholder refuses to sign any form of confidentiality agreement. My concern is that by releasing this information without a signed confidentiality agreement we may be violating an employees privacy. Does anyone know of any laws that protect or restict access into this information by shareholders?
Click to expand...
Tell the stockholder you will be glad to comply when:

1. The stockholder signs a confidentiality agreement

OR

B. You get a court commanding you to disclose the same.
 
P

pleaseadviseme

Junior Member
Proper Purpose?

State of IL

Thank you for your reply! He is already threatening to take us to court to get the information. It is my understanding that if he takes us to court and wins we will not only have to turn over the records but we may also be have to pay the attorney fees for him to go to court. In order to try to avoid attorney fees for our defense I'm wondering what, if any, payroll information can be released to a shareholder under these conditions.
 
You must log in or register to reply here.

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top