Schachter v. Citigroup, Inc.

Opinion

ZELON, J.

In this class action, a stockbroker challenges his former employer’s stock purchase plan, which used tax-deferred compensation to purchase restricted company stock for participating employees. If the employee resigned before the stock’s vesting period, both the unvested shares and the deferred compensation applied toward their purchase were forfeited. Plaintiff contends the forfeiture provision violates the requirement to pay wages upon resignation (Lab. Code, §§ 201-202), and constitutes conversion and unfair business practices (Bus. & Prof. Code, § 17200 et seq.).

Early in…