Question: We have always verified a candidate’s previous salary history early on in the hiring process.  Usually we ask for a copy of a pay stub or a copy of the candidate’s previous year’s tax filing. Is there any problem with that practice?

Answer: We don’t recommend this practice. First, a pay stub and/or tax return contains revealing information that an employer shouldn't have pre-hire, such as date of birth, number of dependents, marital status, social security number, garnishments, miscellaneous deductions on pay stubs, and other deductions (think medical costs, child care, etc.). Obtaining this information post-hire is acceptable, but pre-hire it is not. 

In addition, employers should be aware of so-called pay equity laws that are sweeping cities and states across the country. Pay equity laws generally prohibit employers from asking for previous salary information or from basing the new employee’s salary according to what he or she was paid in the past.  Many of these laws also specifically prohibit asking for W-2s and tax returns pre-hire. The main purpose of these pay equity laws is to try to eliminate persistent pay gaps between men and women and minorities. Historically, women and minorities who have been underpaid in prior positions are unable to close the pay gap if future employers know what they made previously and base their compensation offer on that information. Asking for salary history perpetuates inequitable pay.

Instead, we recommend companies pay what the position is worth in the marketplace and not on what the candidate’s previous compensation level was. 

Most hiring decisions are based on the resume and interview performance. We encourage clients to go beyond this two-dimensional assessment and to consider the rule of thirds: 1/3 of the decision should be based on experience, skills and documented ability; 1/3 should be based on performance on behavioral style assessment testing; and 1/3 based on the candidate’s “fit” with the culture of the company. If the candidate hits the mark in all three of these critical areas, it enhances the chances that this person will turn out to be highly engaged, highly productive and an overall top performer.

Affinity HR Group is BSCAI's endorsed HR partner, providing HR support, recruiting and employee engagement services. For a link to our menu of services for BSCAI members, go to www.AffinityHRGroup.com/BSCAI.

To ensure the right people are hired, many companies bring in prospects to shadow an employee. This is so companies can see whether the candidate has the right skills and abilities for the job, and so the candidate gets a realistic representation of the job.

Is there anything wrong with doing this? Absolutely not. It makes sense for both the company and the candidate to assess whether the “fit” is right before the candidate is hired. That said, the candidate should be paid at least minimum wage for the time spent shadowing the employee. The pay can be included in the candidate’s first paycheck if he or she is hired. You can also cut a check to him or her if you decide not to hire the individual. For added protection, companies may want to process a W4 and I9.  

Affinity HR Group is BSCAI's endorsed HR partner, providing HR support, recruiting and employee engagement services.  For a link to our menu of services for BSCAI members, go to www.AffinityHRGroup.com/BSCAI

"Ban the Box" is a movement that advocates for employers to remove asking whether applicants have a criminal background on job applications. We can’t speak to every specific “Ban the Box” law/regulation because they are all somewhat different, but usually they only require that companies remove the question box from the employment application. If you are going to perform a criminal background check later in the process, you may want to let applicants know that on your application so they know they will be subject to one.

We recommend that employers run background checks either at the end of their hiring process or after a contingent offer of employment has been extended – meaning you’re offering them employment contingent on a clean background check. And remember, if you decide not to hire someone because of what appears in their background check, you may be legally obligated to provide the background report to them.

You can run a background check on an independent contractor if the contractor will have access to sensitive materials or the nature of his work requires a clean background check, and you can make the contract contingent on the results. You should also include language in the contract around confidentiality of information and non-solicitation. 

But the most important component of your contract should be that the contract does not constitute an employee-employer relationship. Of course, it’s important to make sure you are classifying the worker correctly – many independent contractors would probably be considered employees if the Department of Labor (DOL) were to investigate the nature of the work relationship. To make sure your contractor is appropriately classified, click here for the DOL’s fact sheet on Independent Contractor classifications.