The Surprising Importance of Knowing Your Job Title and Pay Scale History

When it comes to paying scale, it is important to know the job title and salary history of the employees you have worked with. Many people don’t realize that companies of all sizes are required to document this information during and after an employee’s employment, up to three years after they have left. In this blog post, we will discuss the surprising importance of knowing your job title and pay scale history.

Employers must document their employees’ job title(s) and salary history during and after their employment

Employers have a legal obligation to document their employees’ job title(s) and salary history while they are employed and up to three years after they leave. This includes keeping records of any promotions, pay increases or changes to the employee’s duties. Companies must also keep track of any changes in the employee’s pay scale, whether that includes bonuses, commissions, overtime pay, or other types of compensation. 

Knowing an employee’s salary history can be invaluable for future employers, so it is important for companies to document this information accurately and consistently. It is also important for employers to consider the potential legal implications that could arise from not properly documenting an employee’s salary history. Without adequate documentation, an employer could be accused of discrimination or unfair pay practices, which could result in costly lawsuits. 

By documenting an employee’s job title(s) and salary history, employers are able to ensure fair and equitable compensation for all their employees. Additionally, it serves as a record of an employee’s accomplishments and contributions to the company, which can be beneficial when considering promotions or raises.

Salary history is important for future employers

When applying for a new job, having an accurate salary history is essential. This will help ensure that the applicant is compensated fairly for the position they are seeking. Having an up-to-date job title and salary history will also give employers an idea of the applicant’s skills and experience level. By having this information readily available, potential employers can make an informed decision when considering a potential hire.

Having an accurate salary history is also beneficial for employees. If an employee is considering a new job opportunity, it is important to know what the industry standard pay is for the job title in order to ensure a fair wage. Knowing a salary history can also help employees negotiate better salaries or benefits when moving to a new job or advancing within their current role.

In conclusion, documenting salary history and job titles is important for both employers and employees. Employers need this information to make an informed hiring decision, while employees need this information to ensure they are being compensated fairly. Knowing one’s job title and salary history can help both parties during and after employment.

Documentation is important for legal reasons

Having your salary history and pay scale information documented is important for a number of legal reasons. Companies must be able to demonstrate that they are paying their employees at market value, and having an accurate salary history on file helps to protect against possible disputes or discrepancies. Documentation also ensures that the company is compliant with labor laws and regulations. Furthermore, keeping accurate records of salary history provides evidence of pay equity and fairness when it comes to equal pay for equal work.

Employees should also understand that, even after they have left the company, employers must keep their salary history documentation up-to-date for a period of up to three years. This means that, even if a former employee’s salary history is no longer on file with the current employer, they should still have accurate records of what was paid to them in the past. Having this information on hand can be beneficial when it comes to negotiating salaries with future employers. 

In fact, according to a recent study, 85% of employers view salary history as an important factor when considering job applicants, so it’s important that you are able to provide accurate information about your salary history and pay scale. By keeping an accurate record of your salary history, you can ensure that you are being paid a fair wage and that you are able to negotiate effectively when it comes to future employment opportunities.

Employees should know their rights when it comes to documentation

It is important that employees understand their job title, pay scale, and salary history. Documentation is important for legal reasons, as well as for future employers who may wish to review an employee’s history in order to make informed hiring decisions. Knowing the details of your job title, pay scale, and salary history can help you protect yourself from potential discrimination or unfair compensation practices.

If you have any questions about your job title, pay scale, or salary history, we recommend that you seek legal consultation to ensure that your rights are upheld. With the right guidance, you can be sure that you are getting the pay you deserve and that you are protected from any potential discrimination.

If you’re looking for an easy and efficient way to ensure that your company’s job structure is aligned with the respective levels of work/pay scales, SimplyMerit is the solution for you. With our innovative compensation and benefits software, you can streamline your pay structure and make sure that your employees are paid fairly for the work they do. Say goodbye to the headaches of manual job evaluations and salary adjustments, and hello to a more organized and transparent compensation process. Contact MorganHR today to learn more about SimplyMerit and how it can benefit your company.


About the Author: Laura Morgan

As a founder and owner of MorganHR, Inc., Laura Morgan has been helping organizations to identify and solve their business problems through the use of innovative HR programs and technology for more than 30 years. Known as a hands-on, people-first HR leader, Laura specializes in the design and implementation of compensation programs as well as programs that support excellence in the areas of performance management, equity, wellness, and more.