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Must we reveal salary before offering promotion?

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in Compensation and Benefits,Human Resources

Q. Do we have to tell employees exactly how much they will be making before we offer them a promotion? — T.M., Illinois

A. Assuming the employment relationship is on an at-will basis, an employer has the flexibility to change the terms and conditions of an employee’s job prospectively, with or without advance notice. In such cases—while it may be good for morale to keep employees apprised of such important information—you legally can offer a promotion or other position change without disclosing some or all of the compensation terms.  

Best bet: To avoid misunderstandings that can give rise to disputes, it would be advisable to clearly spell out the main terms of employment offers, preferably in writing.

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