Catalyst Health Solutions, Inc. v. Magill

Unvested Stock Options as Wages

U.S. Chamber's Position

NCLC urged the Maryland Court of Special Appeals to rule that unvested stock options are not "wages" under Maryland wage law, and therefore can be forfeited upon termination. Businesses will be deterred from providing stock incentives if unvested stock options must be paid as wages when an employee is terminated.

Case Outcome

The Maryland Court of Appeals ruled that unvested stock options are not "wages" under Maryland wage law, and therefore can be forfeited upon termination.

Procedural History

Amicus brief filed 6/15/09. Review granted 7/17/09. Decided 6/2/10.

Case Documents