Employee Access to Salary Info

LM · May 2002

All US states -- anyone aware of any privacy issues that may arise from permitting certain sales employees from having access to other employees' names and salary information as a motivational tool to increase sales? Thanks for any assistance you can provide.

Jez · May 2002

I can't speak to the legal aspect of this, but my thought is that it is never advisable to share this information unless there is a legitimate "right to know". The scenario you describe does not appear to fit in this category.

Brad Forrister · May 2002

Suits against employers for violating employees' right to privacy usually arise from the release of medical information, where there are strict ADA limitations on how employers can disseminate the info. I've seen a few cases arising from the release of salary information. They're usually in the public sector, where the individual's right to privacy is often outweighed by the public's right to know.

The question is whether a private sector employee has a protectable privacy interest in salary information. I'd be reluctant to bet that a court wouldn't find a protectable interest.

If you're primarily interested in revealing salary info for the top performers, to spur on the laggards, why not ask their consent? You'd have no problem if you got consent, and if they didn't give you consent, that would tell you a lot about how sensitive your employees consider their salary info.

You might also be able to circumvent problems by revealing sales volume, rather than compensation.

Brad Forrister
Director of Publishing
M. Lee Smith Publishers

Theresa Gegen TX · May 2002

While I don't know any law that prohibits it, I think giving out name and salary information, from a practicle point, will cause a lot of moral problems. I do not expect that it will increase productivity. Also, it may get some employees thinking that the reason they make less is gender, age, race, etc.

Also, any employee who feels that his or her privacy has been invaded can sue -- all it takes is a small filing fee (about $200) and a piece of paper. The claim may not have much merit, but it could cost a lot in attorneys fees to defend.

You may be better able to motivate by giving out generic information without names attached. For example "one employee got a bonus of $____ this quarter because of his high volume of sales"

Good Luck.

Employee Access to Salary Info

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