[tonystubblebine]

I complete disagree with the people saying you should talk to a lawyer. If you want to stay on good terms with them, anyone connected to the company, and anyone they know, then you need to work this out at a personal level. If you sue or even admit that you've talked to a lawyer then a lot of people are going to be afraid to work with you.

Thankfully, it's a pretty easy conversation to have with them. Tell them that working for them has left you in a financial straight. Then ask them if they could include any sort of cash in their severance package.

[wpietri]

I disagree.

First, you don't have to admit that you talked to a lawyer. You can just get their advice. Second, as a hiring manager, I have a lot more respect for people who are smart enough to get advice when they need it. Third, lawyers are professional negotiators, so talking to one before you negotiate something can be immensely valuable. Especially when negotiating with much more experienced people.

[mst]

My initial thoughts are similar:

Screw finding a lawyer.

Do point out that you were leaving the money with the company, and would they mind horribly if you submitted your last 2-3 months' expenses (or whatever a sane expense period is) so that you're less out of pocket.

Don't waste time fighting it, because if they do well they'll be able to afford to squash you and if they don't then there'll probably be no money left by the time you win anyway.

The last paragraph is the most important; if it matches up to your view of current reality then it really doesn't matter who's in the right or wrong here, what matters is it isn't worth your while to pick a fight over it.

[rayiner]

I disagree. As someone said above, talking to a lawyer does not mean filing a lawsuit. No professional business person is going to hold it against you for talking to a lawyer in a situation like this--that's what they're there for. And frankly you'd be a chump not to explore your options, but that's almost certainly what OP's founders are counting on.

[trevelyan]

I agree. The parent poster is also giving bad advice in encouraging this guy to tell his former coworkers that he does not have the money for a lawyer/lawsuit.

I'm not a lawyer, but a bit of searching online suggests that the behavior of the company may be illegal in California under a law called ERISA (see the third bullet point under "ERISA Violations" on http://www.lawyersandsettlements.com/case/stock_option.html). The onus would presumably be on the employee to establish he was fired in order to avoid having his shares vest, but if the company had no other reason to be dissatisfied with his performance and never communicated any concerns before his termination he might have a case.

Personally, I think he should ask for his full year of equity and try exchanging equity for severance if they are reluctant. The thing to remember is that he might only have been on good terms with one of the founders, which means there are group dynamics to how any action he takes will be interpreted on their side. It may also only be one of the founders who cares, and the offer may be a negotiated settlement offered from a negotiation between them rather than any specific desire to formalize anything and avoid a lawsuit.