Can unvested RSUs be recovered after a layoff?

Yes. When a layoff or termination is unlawful, such as when it is discriminatory or retaliatory, lost unvested equity may be recoverable as part of the employee’s damages under employment law.

Does at-will employment prevent recovery of lost equity?

No. At-will employment does not permit termination for unlawful reasons. If an employee was terminated unlawfully, equity forfeiture resulting from that termination may be legally actionable.

Do arbitration agreements affect equity recovery claims?

Arbitration agreements may change the forum where a claim is resolved, but they do not necessarily eliminate an employee’s ability to seek recovery of lost equity caused by unlawful termination.

Can unvested RSUs be recovered after a layoff?

Yes. If a layoff or termination was unlawful—such as when it was discriminatory, retaliatory, or based on protected leave—lost unvested equity may be recoverable as part of an employee’s damages under employment law.

Does at-will employment prevent recovery of lost RSUs?

No. At-will employment does not permit termination for unlawful reasons. If an employee would have continued working and vesting equity but for unlawful conduct, equity forfeiture may be legally actionable.

Do arbitration agreements prevent recovery of unvested equity?

Not necessarily. Arbitration agreements may affect where a dispute is resolved, but they do not automatically eliminate an employee’s ability to recover lost equity caused by unlawful termination. Arbitrators routinely consider equity-based damages.

How close to vesting do I need to be to recover RSUs?

There is no fixed rule. Courts and arbitrators consider vesting schedules, performance history, employer intent, and whether vesting was reasonably expected absent the unlawful termination.

What documents should I preserve if I lost RSUs?

Preserve equity grant notices, vesting schedules, offer letters, performance reviews, internal communications, severance documents, and records showing the timing of termination relative to vesting events.

Blog | Lumen Law Center

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