Consumer Law

Current and Former Uber Employees are Suing Over Stock Agreement

Uber (NBC) (09/01/20)— Nearly 200 current and former Uber employees sued the company Thursday, alleging it broke an agreement that would have granted them shares at a lower rate and saved them millions of dollars in income tax. 

The lawsuit challenges a key element in Silicon Valley recruitment: restricted stock unit (RSU) agreements.

Tech companies, especially in their early days, often offer employees stock options to lure talent to take a chance on them, even if they are unable to offer hefty salaries as they begin to grow. 

 The employees suing Uber, which the complaint estimates make up a fraction of 15,000 employees and contractors who would be affected, allege that Uber accelerated the date it would issue shares to employees, in breach of its agreement.

Read the source article at myarklamiss.com

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