Outsourced in Tn (the boot)

[GlaserJs]

I work for a large company in Tennessee that is going to outsource their mainframe development group (programmers and some management staff, about 50 of us) and some of their customer service folks as well (around 25 folks). We were told that if the outsourcing vendor offers us a compatible job (-15% of current salary & benefits) we will not be eligible for severance pay. They also told us that we would losing our stock options. The stock options mentioned, are a part of our salary and we have earned those shares. The vesting schedule set up by the company was to retain the employees. Since they do not wish to retain us, what gives them the right to revoke our earned options, is that legal? Is there such a thing as a compatible job? What gives them the right to select whom we are going to work for? Also, they are planning on posting our names and salaries in the contract, can they disclose our names and salaries like that? I would appreciate any feedback on what our situation is. Thanks

 

[loku]

Except for maybe the stock options, this does not look good for you.

1. They are not legally obligated to pay severance; therefore, they are within their rights to set up a legal restriction on getting the severance, such as the “compatible job” and they have the right to define “compatible job.”

2. As for your stock options, the right to revoke the options depends on the option contract. If the contact gives them the right to revoke upon a lay off, then they can. If the contract has vested the right to the option in you in spite of the lay off, then you have a claim against them for that.

3. I believe that your names and salaries are a trade secret of the company and if they wish to disclose that, they may.