• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • HOME
  • ABOUT

The Fortunate Investor

Investing, Business, Saving, Debt, Money, Retirement

  • Business
  • Invest Your Money
  • Save Money
  • Get Out of Debt
  • Make Money
  • Family & Money
  • Taxes
  • Retirement
    • Retirement Calculator
You are here: Home / Make Money / Navigating Employment Etiquette: Can Employers Demand Pay Disclosure?

Navigating Employment Etiquette: Can Employers Demand Pay Disclosure?

April 21, 2023 By Bobby | This article may contain affiliate links. For more information visit our Disclosure

Can a potential employer view my pay? It’s a common practice, but is it legal? Here’s what you need to know about turning over check stubs.

Interviewing for a new job is scary enough – but how do you handle the salary questions? Should you reveal your current salary? Is the new employer even allowed to ask?

Money is a sensitive and confidential issue. You might want to ask: “Why do you want to view my comp?” but are afraid this question could lose you the job offer.

Here’s everything you need to know about navigating the sensitive issue of salaries when you’re looking for a new job.

In general, a new employer should not ask to view your check or stubs from a previous employer. It is typically not relevant to your current job, and such a request could be viewed as an invasion of privacy. However, an employer may ask for proof of your previous salary, such as a W-2 form or a salary history document, as part of the hiring process.

It’s important to note that the laws regarding this issue can vary depending on your location and the specific circumstances of your employment. Some states and cities have laws that restrict employers from asking about salary history altogether, while others allow it in certain circumstances.

Additionally, some industries may have different practices or regulations regarding the sharing of salary information.

In any case, if you have concerns about a potential employer’s request for compensation information, it’s a good idea to consult with a legal professional or human resources representative to better understand your rights and options.

Table of Contents

  • Why Would a New Employer Ask for a Pay Stub?
    • Verification of Salary
    • Confirmation of Employment
    • Assessment of Deductions and Benefits
    • Should I Start Collecting Your Old Comp History?
      • Do I Have to Reveal My Salary in a Job Interview?
    • What are the compensation transparency laws?
  • Do New Employers Have the Right to View My comp?
    • What do I need to give my new employer?
    • What Happens Once I Have Accepted a Job Offer?
    • Wrapping Up

Why Would a New Employer Ask for a Pay Stub?

When you are searching for a new job, one of the most common questions you will be asked is, “What is your current salary?” Many job seekers may feel uncomfortable answering this question, but it is a common practice for employers to ask for a current salary during the hiring process. But why would a new employer ask? There are several reasons why an employer might ask for this information.

Verification of Salary

Salary

The most obvious reason why a new employer would ask is to verify the salary you claim to earn. This is especially true if you are applying for a job that requires a certain level of experience or education. In such cases, employers want to ensure that they are offering you a fair salary that matches your level of experience and skills.

If an employer has asked, it is likely that they want to ensure that your current salary is in line with what they are offering for the position. By requesting a pay stub, the employer can verify your current salary and make sure that their offer is competitive.

It also helps to ensure that you are not exaggerating or lying about your salary, which could potentially harm your future employment prospects.

Confirmation of Employment

In addition to verifying your salary, a new employer might also ask to confirm employment. If you are currently employed, your stub will indicate your current employer and the amount of money you earn. This information can be used to confirm that you are currently employed and to ensure that you are not currently under a contract that would prevent you from working for the new employer.

It is important to note that employers typically do not contact your current employer until after an offer of employment has been made. Therefore, requesting a comp history is a discreet way for an employer to confirm your employment status without alerting your current employer that you are searching for a new job.

Assessment of Deductions and Benefits

It also provides a detailed breakdown of the various deductions and benefits that are applied to your salary. These deductions could include taxes, Social Security, and Medicare, among others. By looking at your history, an employer can determine how much money you are actually earning after these deductions have been applied.

This information can be useful to an employer because it can help them determine the total cost of employing you. In addition, if the new employer offers benefits such as health insurance, they can use the info to ensure that the benefits they are offering are comparable to what you are currently receiving.

Employer might ask for a for other reasons. First, they may want to verify your current salary to ensure that their offer is competitive. Second, they may want to confirm that you are currently employed without alerting your current employer.

Finally, they may want to assess the deductions and benefits applied to your salary to determine the total cost of employing you.

It is important to note that providing such information is typically not mandatory, and you are not legally obligated to provide one. However, if you refuse to provide one, it could potentially harm your chances of being hired. If you are uncomfortable providing such info, you can politely ask the employer why they are requesting it and explain your concerns.

Ultimately, it is up to you to decide whether or not to provide it, but understanding why an employer might ask for one can help you make an informed decision.

Should I Start Collecting Your Old Comp History?

YouTube video

Do I Have to Reveal My Salary in a Job Interview?

At some point in the interview process, it’s likely that your prospective new employer will ask about your current salary.

Technically, you have every legal right to refuse to answer that question. You may also have a confidentiality clause in your current employment contract that expressly forbids you to discuss your salary outside of the company.

However, some employers may wonder why you’re not providing your salary and push you for it.

The number one rule here is: do not lie. Even if you’re interviewing for a job way above your current comp grade, don’t lie about it.

You have two options: you can stick by your original response and not tell them. You may have to memorize a few ways to politely but firmly decline to answer. Or, you can tell them the truth.

If your new role has a much higher salary on offer, this is your chance to explain why you feel you deserve such a raise. List examples of additional responsibilities you have taken on, for example, to demonstrate that you’re capable of doing the new job.

If you lie and tell them your salary is the same – or higher – than the one advertised for the new role, you risk being found out. This could result in the retraction of the job offer or dismissal if you have already started to work for them.

What are the compensation transparency laws?

Salary transparency laws vary by jurisdiction. In the United States, employers are generally not allowed to demand comp disclosure from their employees. These laws aim to protect employees’ privacy and prevent potential discrimination based on salary information.

However, employers may still inquire about salary expectations or discuss compensation details during the hiring process. It is important for employees to be aware of their rights and familiarize themselves with the specific regulations applicable in their state or region.

However, some employers may wonder why you’re not providing your salary and push you for it.

Do New Employers Have the Right to View My comp?

A prospective employer, that is, one with whom you have not yet signed a contract with yet, has no legal right to view your history. They are allowed to ask for it but you are allowed to deny them access.

There is an ethical debate about asking for one’s history. On the one hand, it confirms the employment status an interviewee has quoted in their interview and on their CV.

On the other hand, it implies that the new employer has a lack of trust in the individual. If this is the case, why would they hire that person anyway?

Finally, requesting evidence of a previous salary is also a way for budget-minded companies to low-ball their own salary offer to you. It acts as a benchmark for your previous experience and leaves them open to offer a lower salary based upon your current earnings.

Additionally, showing new employers your salary, or telling them your current salary, gives them more bargaining power.

Most HR professionals would understand if you choose to keep your right to privacy and confidentiality of salary status, but those that push may make you question whether you want to work for that company.

What do I need to give my new employer?

As an employee transitioning to a new employer, you may be wondering what documents are required to be provided. It is important to note that while a new employer generally has the right to request certain information, asking to view your comp may be subject to legal limitations.

Specifically, the ability for a new employer to ask for your stubs may vary depending on local laws and regulations. It is advisable to familiarize yourself with the legal requirements in your jurisdiction to determine whether your new employer can request access to your comps.

To ensure compliance and avoid any potential legal issues, consult with an employment lawyer or relevant authorities to obtain accurate information.

What Happens Once I Have Accepted a Job Offer?

If a new employer asks for a previous stub once you have started working for them, you must supply it by law.

The reason for asking may be as innocent as they need the information to create pay stubs. It is unlikely that they want to check your honesty after they have already hired you, but this could also be the case.

If they have asked for your previous check and they see that the salary is different from the one you quoted in the interview they can dismiss you for dishonesty.

Wrapping Up

In conclusion, it is important to understand your rights as an employee when faced with the question of whether a new employer can ask to view your check. While employers may have legitimate reasons for requesting this information, it is crucial to weigh the potential risks and benefits before providing access.

Protecting your privacy and ensuring that you are treated fairly are essential considerations in any employment situation. As a general practice, it is advisable to consult with legal professionals or employment experts to understand the specific laws and regulations in your jurisdiction. Remember, knowledge is power when it comes to safeguarding your personal information and ensuring your rights as an employee.

Primary Sidebar

Popular Articles

How to Financially Prepare When a Loved One Needs Bail

How to Financially Prepare When a Loved One Needs Bail

No one talks about how financially draining it can be to help someone you love get out of jail. It’s … Read More about How to Financially Prepare When a Loved One Needs Bail

What To Think About When Starting A Law Firm

What To Think About When Starting A Law Firm

Getting your law degree is a big accomplishment. What’s even more ambitious and rewarding is wanting … Read More about What To Think About When Starting A Law Firm

Mastering Work-Life Balance in a High-Speed Office World

Mastering Work-Life Balance in a High-Speed Office World

Work Life Balance Overview In today’s fast-paced world, achieving a balance between work and … Read More about Mastering Work-Life Balance in a High-Speed Office World

Beyond Allowance Teaching Teens to Manage and Grow Their Money

Beyond Allowance: Teaching Teens to Manage and Grow Their Money

Teenagers get a tough time of it in many circles these days, accused of any number of moral … Read More about Beyond Allowance: Teaching Teens to Manage and Grow Their Money

Tree Care Tips All Homeowners Need to Know

Tree Care Tips All Homeowners Need to Know

Homeowners with trees on their property will understand the importance of ensuring they're healthy … Read More about Tree Care Tips All Homeowners Need to Know

Footer

TOPICS

SAVE MONEY
INVEST MONEY
REDUCE DEBT
MAKE MONEY
FAMILY & MONEY
TAXES
START A BUSINESS
RETIREMENT

THE FORTUNATE INVESTOR

ABOUT US
ADVERTISE
CONTACT US

The Fortunate Investor focuses on personal finance topics to build wealth. Topics include saving money, investing, managing debt, family and money, taxes, making money, college planning, starting a business, coupons and retirement.

SOCIAL MEDIA

FACEBOOK
TWITTER
PINTEREST
YOUTUBE

Copyright © 2025 Fortunate Investor. All Rights Reserved. | Disclaimer & Disclosure | Privacy Policy | Terms of Service