If you are a contractor and your client wants to hire you, is it legal or ethical for that client company to ask for proof of your current salary (like your tax returns or pay stub)? This is the first time I heard of a company asking for that. Any supporting information that it is ok or not ok would also be helpful. Thanks!
2006-09-26 15:54:12 · 7 answers · asked by ami 4 in Business & Finance ➔ Careers & Employment
Thanks so much for all the answers!
All of them have good points to consider. It would probably be best, to stay in the game, give a copy of a paystub (with all the information x'ed out that is private).
If they ask for further proof, then the best thing to do is refuse as then it is weird and probably not the place to be employed.
2006-09-26 16:31:58 · update #1
Absolutely this is legal. You, however, have the legal right to refuse (good luk with the rest of that hiring process, though). As a contractor, they know what they pay FOR you. Now they want to know what to pay TO you. If you make $25/hr, but they pay your firm $45, then the firm pockets $20/hr. They know what they pay the firm, they have no idea what the firm pays you. Chances are, they want to make you a worthwhile offer (so you say yes).
If you don't feel the offer is legit, don't comply. If the people at that company seem like tightwads, they may just want your info to negotiate a better price for you with the firm (who won't be happy you shared that tidbit with them).
I hire contractors all the time. I ask this question all the time, but I NEVER have asked for proof (why wouldn't they believe you when you tell them what your current salary is - that's sounds funny to me).
2006-09-26 16:12:44 · answer #1 · answered by jumping_in_101 3 · 1⤊ 0⤋
Actually it depends on your contract or terms of employment with your contract employer--- the one who pays your paychecks, not the client, gets to make the rules on this one. Most contracting companies state in their employee handbook or similar rules that this is NOT allowed and you can actually get blacklisted by that contracting company, or even sued, if you disclose this. That's because your client is paying for your time at a premium--- you only are getting paid about 50-60% of what you're getting billed out at. And knowing your exact salary gives your client an unfair advantage when it comes to future negotiations.
Play it safe. Ask the client to request whatever the contracting company will turn over, but the client has to ask the contracting company directly. This gets you out of the middle and it ensures you don't accidentally give out more information than you should.
2006-09-27 00:13:49 · answer #2 · answered by dcgirl 7 · 1⤊ 0⤋
Yes, it's legal. It's at their discretion whether to hire you or not. They can even require a drug test. As long as they don't discriminate against you because of race, religion, national origin, sex, or sexual orientation. Of course, proving that they did discriminate, in any way whatsoever, is more trouble than it's worth.
I think they just want to get an idea of what to pay you.
2006-09-26 22:59:02 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Its weird, and don't work for weirdos. Actaully it could be defacto illegal since your tax returns tell if you are married, have dependents, and other information, which could be grounds for discrimination. I would decline, stating that information is proprietary and leave it at that.
2006-09-26 23:12:12 · answer #4 · answered by MarshaMarsha 3 · 1⤊ 0⤋
I think they are trying to get an idea of what to pay you. You can respectfully decline as i don't think its legal to ask questions of current salary.
2006-09-26 22:57:35 · answer #5 · answered by fetchrat 3 · 1⤊ 0⤋
It certainly isn't something they could require you to do - but depending on the nature of the work - they may certainly decided not to hire you.
2006-09-26 22:57:06 · answer #6 · answered by Anonymous · 1⤊ 0⤋
They want to make sure you finish jobs,neither illegal nor unethical,just smart business!!
2006-09-26 22:57:29 · answer #7 · answered by Anonymous · 0⤊ 0⤋