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Question: I work for a firm that is notoriously cheap when it comes to paying its employees. I’m now interviewing for a job at another company. When I’m asked about my current salary, should I tell the truth or give the amount that I know I’m really worth in the job market?

Our Answer: Lie through your teeth.

Just kidding. While we sympathize with the position you’re in, being underpaid by one firm doesn’t justify lying to another, especially when the sole purpose of the misrepresentation is to manipulate the company into paying you more. To lie like that would be as unethical as your prospective employer misleading you about, say, the period of time before you’ll be eligible for a raise.

Ethics aside, lying is a bad idea because you run the risk of getting caught. And since falsifying information on a job application is often grounds for dismissal, that’s a risk to avoid at all costs. Imagine losing your job for lying, then being asked in subsequent interviews why you left your last position.

So tell the truth - or try to deflect the question. But either way, make a case for why you should be paid the salary you want. Point out what people with your skills make elsewhere. Mention that you’re changing jobs because you feel you’re underpaid. And most important, explain what makes you worth the money. After all, what matters to your prospective boss is not what you feel you’re entitled to but how hard you’re willing to work and what you’re prepared to deliver. So tell him!

Questions? Email Money Magazine’s ethicists – authors of the upcoming book “Isn’t It Their Turn to Pick Up the Check?” (Free Press) – at FlemingandSchwarz@right-thing.net.

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Question: My wife wants to start her own business, and to raise money we need to sell our share of the vacation home we own with my sister’s family.  We’ve offered it to Rachel and her husband, but they say they can’t afford to buy us out.  This means putting the place on the market, which they refuse to do.  Would we be wrong to insist?

Our answer:  Even if you have the right to force the sale of the house, you’re going to have to find another solution if you want to close escrow with a clear conscience.  That’s because the deal you entered into isn’t some arms-length real estate investment. It’s a family arrangement, so each of you is obligated to accommodate the other.   For you, this means not insisting on selling the home.  For Rachel, it means trying - really trying - to help you cash out. 

What are your options?   Begin by looking for a bank that will let you borrow against your equity in the house.  If that won’t work, try giving your sister an economic incentive:  either a chunk of the profit on your share if she’ll agree to sell, or the opportunity to buy your share at a below-market price.  If neither appeals to her, try to find a buyer for your interest in the cabin.  If she’s turned down your other offers, Rachel can’t be too choosey about whomever you find.

If by now you’re thinking that getting your money out shouldn’t be this hard, you’re right.  Next time you buy a house, boat or car with someone, agree in advance what you’ll do if one of you wants to sell and the other doesn’t.

Money Magazine’s ethicists are authors of the forthcoming book “‘Isn’t It Their Turn to Pick Up the Check?’” (Free Press). E-mail them at FlemingandSchwarz@right-thing.net.

Filed under Uncategorized

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About the authors
Money Magazine's ethicists are the authors of "Isn't It Their Turn to Pick Up the Check?" (Free Press, 2008). E-mail them at FlemingandSchwarz@right-thing.net

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