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Requesting copies of W-2 from a candidate before extending an offer

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Someone came to ask me and I thought I raise it out here.  This is HR related.
 

Is it legal for a prospective employer to request for a copy of the W-2 from a candidate that the employer is about to make an offer?  The prospective employer already verified employment with the candidate’s HR dept.  The prospective employer is interested in the salary history of the candidate.   The candidate completed an application form where it is required to state the starting salary and the current salary and in addition, the employer is requesting for copies of all W-2 since start of employment.
 
Is this a common practice to request for copies of W-2?

Appreciate any feedback on this.

thanks
 
 

Comments

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Probably OK

Seems a little hard core but, would think OK if voluntarily provided. I have heard of prospective employers asking for proof of current salary, rare but have heard of it. Although it was usually just a copy of a recent pay stub.

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Copy of W-2

I have seen it done and it is legal but I would not do it. The only reason would be to verify salary and W-2s do not distinguish one time items like retro pay, etc. and base salary. Furthermore if you cannot trust a candidate on his history issues you probably should not hire him/her.

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Copy of W-2 required before job offer

This company is too hung up on details from the past. The position should be focused on how the applicant can help the company in the future. Not a company I would want to work for.

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It happened to me

It is legal - make sure that you want to work there.

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Copy of W-2 required before job offer

I'm not sure how long you have been employed but providing copies of W-2s since you started employment seems inappropriate unless you somehow gave them salary information that is in conflict with the position. As a CFO and head of HR, I always decline to provide salary information to a employer who is inquiring about a current or past employee. I would offer to give them your most recent W-2 after receipt of the job offer.

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Copy of W2 before job offer

Did this in the past only to verify sales volumes / commissions on sales employees (in an industry and location where sales compensation was very similar between competitors). However, the past did not always give good indications of the future success for these employees.

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A "Horizontal" job offer ????

I think this issue exposes a more important and (to me) undesirable position taken by employers looking to hire financial, IT, and administrative employees. The concept being presented by this type employer is that they want a person to fill a position just like the one they left doing the same thing that was done before, but I don't want them to get a raise. ??

This sort of cuts off right at the beginning of the job any efforts to improve the position and the pay. It is almost like asking the employer to provide a reference letter from the person previously doing the job inorder to see if the new job can be done at the rate you were previously being paid. What if the job is an "impossible" job without changes ??

On the other hand - what if the applicant wasn't worth what they were being paid previously, I think baseball teams would have a problem dealing with this approach.

Jim Finn

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Unavoidable, depending on the

Unavoidable, depending on the position. And I would say to be expected. I think most hiring managers for most positions are looking for someone who has been there done that. That means they are looking for existing skills and direct experience, along with, one would imagine, proof that the person did decent work at their past jobs. I don't know how you escape that.

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Depending on the Position 0r "Infrastructure"

I guess a point I was trying to make is that there is no assurance that the job is similar to what you were being paid for at the prior rate of pay. I have moved from a controller position to a another Controller position where the infrastructure, systems, and personnel support were not even comparable. I also moved into a CFO position that considered the fact that the systems needed to be redone ... so prior pay was not even a consideration.

I believe there are different people ad different corporate support infrastructures. Some are ridiculously labor intensive and some are close to being "self closing" - with similar pay. If a W2 becomes part of the hiring negotiation, then I would require the employer to discuss their commitments for equal or better closing systems support. Over 80% of the financial reporting and GL systems I have seen are more trouble to use than they are worth.

J Finn

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Not a good idea or trend

I also have heard of this in the past and I personally would not request nor agree to supply this information. It is not a question of transparence; it is a question of personal privacy.

If you do not have the skills to ascertain if the candidate is a good fit and worth the salary you are paying, then maybe you should reconsider your position.

If I requested to see a copy of the company financials, to see if the company was stable and worth my time to invest my intelligential talents then you would have the right to expect the same from me.

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W2, A "One-Way" negotiation tactic

I also would not provide this type of information unless the company was willing to provide comments and references from the last 2 or 3 people who held the position. This even assumes the deal looked good enough to chase.
However, I just reviewed the comments on this and noticed two "Problems": 1. The original issue was that the company requested a full set of W2's for all years of employment. The IRS and Social Security have this info, and it is considered restricted and protected information. ?? What if they only want the information to negotiate with someone else ?? And 2. Someone made the comment that the company may be interested in whether the candidate had been there, done that etc, and assurance that the candidate performed a decent job at prior employment. How does a W2 confirm or provide assurances of either???

I am of the school that anyone who has the notion that the person providing references is any more capable than the person requiring a reference is a bit naive. As someone else commented - the W2 or a HR reference only supports that a person worked there and the dates (W2 also provides dollars).

If an offer has been extended, I would be more likely to provide only the most recent W2; However, since all jobs are temporary, I would want some solid information related to the company and the prior persons opinion of the work requirement (and of the person requesting the W2).

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W2, a "One-Way" negotiation tactic

I question their ethics and need for this info.

There are so many good companies to go work for, why, even in these hard times in finding employment, would I even want to go there to work for this type of employer. No, don't think so.

Like the previous person stated, I would also, want to know who left and where could I contact them for reference on the company.

But, on second thought, why bother? This is definitely not a company to work for. If, they think so little of their employees at the entry stage, think about how hard it would be to work there on an ongoing basis.

They have more problems beneath the surface, then hiring a new Controller or CFO, etc. They have real deep trust issues, as well as ethics, and probably have a revolving door. Somewhere along the line they hired a fanatic that is in a position of authority, that may eventually take the company down, with these types of practices.

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Cheap Way to Vet Candidate's Veracity

Most interviews ask about most recent compensation. Having to provide W2 allows the prospective employer an easy way of testing a candidates willingness to stretch the truth (or not). The last thing I would think most people want to do is hire a finance executive who is less than scrupulously honest.

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past salary

I think you would be sending a bad message to request a W-2. A employees value is what you believe they are worth to th ecompany. each party needs to have trust in the other, it is a two way street.

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W-2 request

An after the fact request is irrelevant if an offer based on company and competitve pay standards has been made and agreed to. The question of what level of compensation is desired had to come up during the interview process for targeting purposes. There needs to be a way to address a request like this without putting the offer at risk. Does anyone have any suggestions?

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Show Them the W-2

this kind of request is legal although slightly unusual. however, in this day and age where the twisting of truth seems to happen more frequently, the employer may only be trying to assess the candidate's honesty. the negotiated pay range may be absolutely fine. they just want to confirm the candidate's honesty. And, quite frankly, if the candidate was truthful on the application, this shouldn't be a problem.

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Company requesting W-2 candidate

Asking for a W-2 from a candidate is a new one on me but sounds like an HR idea to give easy, i.e., non-thinking, rules to follow and to partially justify their jobs. One should hire an employee for the value he/she is expected to add to the enterprise and the appropriate salary is that which will persuade them to work for you. That is a judgment call on the part of the hiring company and requires thought, judgment, and risk-taking not a simple rule to follow. Past salaries as evidenced by W-2's should have absolutely no bearing on a job offer. W-2's cannot tell the value a person will add to a company or the appropriate salary to compensate that person. It is the past. One may take lower salaries at times for many reasons.

Unless in dire straits I think I would respectfully tell the company that my past W-2's have no bearing on this and don't understand the need. If they are at the offer point I'm sure the hiring manager is interested in getting the position filled now by a competent person, not in having every box of some form filled out. If they insist let them start the hiring process over and go work for the competitor who may have a more enlightened idea about hiring. They have revealed a great deal about their company culture.

On an amusing note, to verify the accuracy of their pay scale data, would they reciprocate and show you W-2’s of employees that will be in the same salary range as the pay grade in which they will assign you. Of course, not!

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REQUESTING COPIES OF W-2 FROM A CANDIDATE

Good one Nat!

Doesn't anyone check references anymore? I would HOPE that a prospective employer's primary interest is whether the candidate can successfully perform in the position. If all indications are that the candidate can successfully perform, then the employer should offer a compensation package that appropriately reflects the position, as well as the entity's pay structure.

The implication in the foregoing discussion is that previous salary is a measure of competency. I’m sure we’ve all known people who weren’t worth what we were paying them! And the reverse is true as well.

I wonder if there isn’t some kind of underlying issue here. Does the employer not believe the represented salary history? Even if the salary history can be substantiated, is taking a job in this environment worth it?

Josie, if your friend has other employment options, I would be tempted to suggest that they keep looking. Just because they can (request a W2 copy), doesn’t mean that they should. And I’m sensing some red flags with respect to the prospective employer.

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Globalization

One way to look at this is as an impact of influences from other business cultures. It is not unusual to require this in other countries. The US is somewhat unique in that gender, race, marital status etc are explicitly off the table in discussions, so I've run into some feelings of personal discomfort when getting resumes for positions in Europe that gave me info right off the bat that I scrupulously avoid asking for.

While Americans consider personal finance "the last taboo", it is important to understand that not all cultures feel this way, and our business culture is adopting these and other novel approaches to judging a person's employment history. Title, company size, GPA...it's just another piece of the puzzle. It may feel awkward, but the company in question may not be doing this from a negative standpoint. They may just simply be adopting methods of making an informed judgment about potential hires.

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W-2 requests and globalization

In that case the response is very simple. Since it is an American that they want to hire, the response is that in the American business culture it is totally inappropriate to request such information and is considered a reflection that the company does not trust the candidates they are about to hire. All the arguments above that it is totally irrelevant to the value the person will add still apply and should be made.

If they want to hire you it is because they believe that you will bring something to the table, i.e., add value, that they need. If so they should respect your cultural taboos and refrain from pushing for inappropriate information. If not, let them start all over again and go work for the competition.

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