Legal Question in Business Law in California

I recently left an employer that offered stock options. The fine print states that upon termination, your stock options are no longer valid. (of course...I didn't know this at the time of my termination). The day after my termination I logged into my stoc options account and sold the rest of my options. It appears the request was executed.

It appears my old company didn't proceed with my terminiation. In fact, I called the payroll department and they believe I am still employeed. They do not have any order to cut me a check for my last day nor for my vacation time (CA requires employers to pay employees their saved vacation time).

So here is my question. Is it possible that my previous employer could block the final sale or payout of my stock options? Is a compay in California required to cut you a check on your final day? (I am trying to see if there is a loophole since the company didn't give me a final check...maybe legally I am still employed thus not allowing the company to block the sale of my stock options.

Any help would be appreciated?

Regards,

Unemployed


Asked on 9/07/10, 6:15 pm

4 Answers from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

I am sorry to hear you are unemployed. If they ask for the stock option money back I would ignore them. They do owe you your final paycheck, immediately. Wait 30 days and file a claim with the State Labor Commissioner, Division of Labor Standards Enforcement.

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Answered on 9/12/10, 6:49 pm
Daniel Bakondi The Law Office of Daniel Bakondi

How much do they owe you and what company is it?

Best,

Daniel Bakondi, Esq.

[email protected]

415-450-0424

The Law Office of Daniel Bakondi, APLC

870 Market Street, Suite 1161

San Francisco CA 94102

http://www.danielbakondi.com

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Answered on 9/12/10, 10:21 pm

It's never a good idea to ignore a demand for money from anyone with the wherewithal to hire attorneys. They do owe you your full final pay on your last day as long as you give notice, but it only needs to be a few days notice. It's something like two business days. The stock options are a bigger issue of course. Let me know if they try to void the options. They may not. If they do try, I think you have a good case that they are not allowed to. It is quite possible that the language voiding the options is unenforceable.

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Answered on 9/13/10, 9:13 am
Jonathan Reich De Castro, West, Chodorow, Glickfeld & Nass, Inc.

Depending on the amount you got for the options vs. the amount of you final day's pay, you probably may want to let sleaping dogs lie for the time being. If you sold the options in breach of your contract, when you demand payment the company could decide to enforce that agreement which could be much more costly for you than the one day's pay.

IMPORTANT NOTICE: The above response is not intended to, and does not, create an attorney-client, fiduciary or other confidential relationship with the responder. Neither does it constitute the providing of legal advice or services or the giving of a legal opinion by the responder. Such a relationship can only be created, and legal advice and/or legal services provided, pursuant to a written agreement with the responder. Accordingly, no obligations of any kind are assumed with respect to any matter or question presented. It should also be noted that legal issues are often time sensitive and legal rights may be lost or compromised if you do not act in a timely fashion.

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Answered on 9/13/10, 9:44 am


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