California Supreme Court holds that equity compensation constitutes "wages". In a natural evolution from its 2008 decision in Edwards v. Arthur Andersen, the California Supreme Court held in Schachter v. CitiGroup, Inc. (PDF, 107KB) that restricted stock is a form of wages for purposes of the California Labor Code. Although commentators have focused on other aspects of this case, we believe this holding has important positive implications for employees in both civil employment actions and arbitration. For details, check out our article, Schachter v. CitiGroup: The Other Side of the Supreme Court's Decision.

COBRA 65% subsidy now extended for terminations through March 31, 2010. The latest extension also covers employees who are involuntarily terminated after a reduction in hours. In many cases the subsidy for certain COBRA premiums is now available for 15 months post-termination. Download the DOL's newest model notices for an update on how the subsidy works.

Is there a right to privacy in the workplace?. In the recent case of Hernandez v. Hillsides, Inc. (PDF, 221KB), the California Supreme Court seems to answer with a qualified "maybe." Rick Levine writes about why California employees should assume that their "zone of privacy" in the workplace is very limited, if it exists at all.

Baker's Choice: January 2010
Happy New Year! For our January 2010 e-letter, we're highlighting the recent action at the California Supreme Court, extended COBRA subsidy, mounting employment tax audit activity at the IRS and an avalanche of rulings, regulations and procedures from the SEC, IRS, EEOC, DOL . . . the list goes on and on.

The 2010 (Eleventh) Edition of The Stock Options Book available now. Information on how to get the Alisa Baker's popular text for equity compensation professionals and students here.