Publications

New York Labor Law: Unvested Stock Options Are Not Considered Wages

Summer 2006
Susan E. Bernstein | Mark E. Brossman | David M. Cohen | Laurence M. Moss | Ronald E. Richman | Holly H. Weiss
Employment & Employee Benefits Developments - Summer 2006

Unvested, contingent rights to equity-based compensation should not be considered wages, according to a recent ruling by the Appellate Division, First Department of the New York Supreme Court. In Guiry v. Goldman, Sachs & Co., a 2-1 majority of the appellate panel held that, under New York’s payment of wages law (Article 6 of the New York Labor Law), terminated employees do not have a right to receive the value of unvested stock options when those options are contingent on future employment.