When applying for a new job, how do they KNOW what your current salary is?

Question

I was told by a headhunter recently not to "exaggerate" my current salary when interviewing for a new job. He said "they always find out." I thought it was illegal for your current employer to give out that kind of info.

I work in the financial services industry.

Answer 1

Certain jobs have certain salary ranges so they can make an educated guess. Employers are not to give that info. out, but when you fill out an application, they'll ask you what it was and you sign the application giving them permission to ask the employer to verify employment and salary level. They will also ask what salary you expect from them, say "open" until you land an interview. So, don't exaggerate a great deal, but, when you negotiate with an employer for your salary, make sure you give yourself a raise from your last position!

Answer 2

This is also a good reason not to lie or "omit" things on your resume, because many companies do extensive background checks, esp. if you are applying for a higher level position. Also, many employers will give that information just by having your prospective employer phone them ... "Sally started working here as a financial consultant in May 2002 at a salary of $25,000 a year and her most recent salary was $32,000 a year ... her responsibilities included ...".

Answer 3

It's not illegal at all. Salary is recorded by the IRS, of course they can find out. Most companies are now running background checks that include past salary. Not only does your salary when you left come up, but also when you were hired.

Answer 4

Well, for instance, if you're in a public sector job, most of those salaries are either publicly posted or on the internet because they're taxpayer funded.

Answer 5

If you give them your social security number they can probably look up that kind of information. We're living in a technology based world, any information you give out anymore can be used against you :-)

Answer 6

They do cross verify and we will be issued with Termination letter, if found guilty. Similar checking is done for Experience, Education etc.
Better that, say the truth and demand for the sal you need. (what to do, HR peoples want to keep their KRA colourful.) (KRA - Key result areas)

Answer 7

Prospective employers can, and often do, ask to see your last few paystubs