While it`s not illegal under federal law to ask a plaintiff for a tax return or W-2, it`s “illegal for an individual to disclose, use, or coerce an individual`s Social Security number,” Waltemath says. “It is also illegal for a person to intentionally disclose Social Security numbers from tax returns or tax return information, or to offer an item of tangible value in exchange for a tax return or tax return information.” Does a future employer have the “right” to ask for yours? Of course, of course, they can ask, but the real question is whether you have to provide it. Providing false information can be a reason to withdraw an offer or terminate it if the employer discovers that you lied. I`m starting a new job and my company wants a copy of my W-2 for 2000. Is it legal for them to receive my personal income? I feel like it`s invading my privacy to know how much I`ve earned. I told them how much I had W-2 during the interview, and they already hired me based on my experience and how I sold myself during the interview process. Now they want a copy of my W-2 on the first day I start. Why do companies want W-2 and is it legal for them to obtain this type of information? A growing number of states and cities have passed laws prohibiting employers from requesting information about candidates` past salaries on the grounds that the practice perpetuates wage inequality. These lawmakers believe that women have historically been underpaid compared to their male counterparts in similar jobs and therefore want to discourage employers from basing their wage offers on past wages. Vault.com Inc.
(“Vault”) provides the information and materials on this website (the “Materials”) for informational purposes only. While we hope and believe that the documents will be useful as a core theme, we cannot guarantee that the documents are accurate or complete. In addition, the Materials are general in nature and may not apply to certain factual or legal circumstances. In any event, the documents do not constitute legal advice and should not be considered as such. So, if you want legal advice, please consult a lawyer. VAULT DISCLAIMS ALL IMPLIED WARRANTIES, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. In addition, some states and local jurisdictions have prohibited wage history issues or are considering banning them until an employer extends a conditional job offer. But Kevin T. was shocked when a potential employer asked him to review his salary by providing a copy of his W-2 form. Laws aim to break the cycle of wage discrimination, and some go beyond simply prohibiting questions about pay history. Some also prohibit an employer from relying on a candidate`s salary history to determine compensation if it is discovered or voluntarily reported. Others prohibit an employer from taking disciplinary action against employees who talk to their co-workers about compensation.
In a similar effort to promote pay equity, Massachusetts recently became the first state to ban the practice of requiring a salary history for job prospects. Philadelphia was the first city to do the same, followed shortly thereafter by New York. While the Philadelphia law was supposed to go into effect on May 23, 2017, it is currently suspended pending a legal challenge. Other states, such as California and New York, are considering similar legislation, while a new bill to be introduced soon would make it illegal nationwide to request salary information before making a conditional job offer. The California ban prohibits private and public employers from researching a candidate`s salary history. Even if an employer already has this information or a candidate voluntarily provides it, it still cannot be used to determine a new employee`s salary. The law also requires employers to provide jobseekers with information on the salary scale if they request it. Requiring applicants to file a tax return or W-2 is more common in certain sectors, such as financial services, and for certain items, such as sales.
It also happens when a former employer has gone out of business and can`t be contacted to verify employment or salary history, Waltemath says. Many employers have policies prohibiting the disclosure of confidential information about former or current employees. U.S.-based employers are not required by law to provide such information to employers. Therefore, your previous employers are unlikely to agree to share salary information with potential employers. Most workers are familiar with the IRS Form W-2 because they receive a copy from their employer every year. The form summarizes an employee`s earned wages, taxes withheld and other information used to prepare tax returns. There are several legal risks for companies that request this document from potential employees. Not only do some states prohibit this practice, but some also don`t allow employers to request a candidate`s Social Security number before making a conditional job offer, Glasser explained. Employers in certain fields, such as finance and sales, will be more likely to request a review, as salaries can vary widely. Compensation in these areas can be strongly influenced by bonuses and commissions, which employers see as an indication of past excellence. While there is no federal law prohibiting employers from applying for a W-2, some states have laws that prohibit or prohibit the practice of basing employment decisions on information you might find in the W-2.
“I recently interviewed for a position on Amazon and went through the three-month interview process and was informed that they wanted to hire me. However, the first step in the tendering process was that I had to file my W-2 or federal tax return from the previous year. Without this information, they could not continue. After providing them with my W-2, they made an offer that was below the salary range originally stated,” says Kevin, who doesn`t want his last name used because he turned down the offer and doesn`t want his current employer to know he`s looking for a job. Tax data or lack thereof can also indicate whether a person is unemployed. In several states (New Jersey, Oregon and the District of Columbia), it is illegal for an employer to turn away a currently unemployed applicant, she adds. Glasser also recommended that these employers ask applicants to blacken their Social Security numbers from the W-2 and limit the request to the W-2 without requesting additional tax records. For example, Rhode Island law prohibits employers from requesting W-2s and other tax documents, and Massachusetts recently passed a law prohibiting salary history investigations until a conditional offer of employment is made. In Rhode Island, for example, employers are prohibited from requesting a W-2 or related tax document.
A San Francisco City Order prohibits employers from requiring and considering a candidate`s current or past compensation when determining salary. It also prohibits them from disclosing the salary information of a current or former employee without their consent. Kevin says his sister-in-law, vice president of an investment firm in the Midwest, told him she experienced the same thing when she applied for a new job. “Another friend is the marketing manager of a local company and says this has become common practice. How is it legal and is it widespread? In some states, you can ask an applicant about their W-2, but if it`s not part of your company`s established policy, it`s much safer to avoid it. If you wish to obtain this information, you must weigh very carefully the potential impact on the expulsion of candidates and, when collecting the information, your use of the information must be carefully monitored, with the assistance of legal counsel, if applicable. Employers may be tempted to ask applicants for a copy of their Form W-2 to verify employment and compensation, but this practice carries significant legal risks, according to labor lawyers. Local governments cannot prohibit employers from requesting the salary history of potential employees. State and local governments are increasingly enacting laws and regulations prohibiting employers from requesting information about the salary history of job applicants. An employer can only obtain information about a potential employee`s salary history after a job offer has been negotiated. But Doran and Glasser both said they don`t approve of the practice.
“Because of the potential pitfalls of asking W-2s — and other tax documents — to check on employment or salary history, I generally recommend not requesting this document as part of the hiring process,” Glasser said.