My boyfriend works for a company where the employees had stock options in the company. The company decided they no longer wanted the employees to have stock in the company. Therefore, the shares were given to the employees.
The employees were given an option to take 20% or 10% (the rest was to go into a 401k or a retirement plan of the employees' choice), or 100% where the employees would be responsible in turning the money over within a 30 day period or be responsible for taxes.
Some employees chose the 100%. In April, the employees that opted for the 100% were sent a check for 20% with no explanation. After phone calls, they (employees) were told that the Board of Directors had decided to keep 80% and invest the rest in the 401k! If they didn't have a 401k, one will be opened for them.
It is now August and nothing has been deposited into a 401k. The employees were told that the money will be deposited at the end of October. Several attempts have been made to recover this money so that the employees can decide which retirement plan to invest their money into and to pay off bills, etc. Unfortunately, many of the employees, in their haste to receive the money, did not keep a copy of the original contract.
Are the employees entitled to their money? Doesn't the money now belong to the employees and no longer is the company's money? Do they have legal ground to stand on?
The employees were given an option to take 20% or 10% (the rest was to go into a 401k or a retirement plan of the employees' choice), or 100% where the employees would be responsible in turning the money over within a 30 day period or be responsible for taxes.
Some employees chose the 100%. In April, the employees that opted for the 100% were sent a check for 20% with no explanation. After phone calls, they (employees) were told that the Board of Directors had decided to keep 80% and invest the rest in the 401k! If they didn't have a 401k, one will be opened for them.
It is now August and nothing has been deposited into a 401k. The employees were told that the money will be deposited at the end of October. Several attempts have been made to recover this money so that the employees can decide which retirement plan to invest their money into and to pay off bills, etc. Unfortunately, many of the employees, in their haste to receive the money, did not keep a copy of the original contract.
Are the employees entitled to their money? Doesn't the money now belong to the employees and no longer is the company's money? Do they have legal ground to stand on?
