Legal Question in Employment Law in Massachusetts

Stock Option Payments

My employer gave us a stock option of 1000 shares on a vesting schedule. I had 250 shares vesting in November 2002. Last week, my employer laid me off, less then 90 days before this vesting. The layoff was due to company consolidation and not my fault. They tell me that I have to forfeit this 250 share vesting, which is $25,000.00. Is this legal, and do I have any claim to this stock option?


Asked on 8/09/02, 12:22 pm

1 Answer from Attorneys
Nance Lyons Law Office of Nance Lyons

Re: Stock Option Payments

The granting and vesting of stock options are governed by the document that set up the plan. Generally, if you are not employed on the day the options vest, you lose.

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Answered on 8/15/02, 12:52 pm


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