Zynga to employees: Give back our stock or you'll be fired

And now we know what a promise from Zynga is worth. It's hard to see a bet that won't be permitted to pay off as anything other than a way to lure and then defraud employees. I think it's time to start insisting on accelerated vesting if you want anyone to take your option offer seriously.

Sometimes you just have to sue to enforce a contract and your rights. Many employees either don't realize this or they don't have the stomach for it. If you find yourself in this position, my advice is to play the game and see it through.

1. Don't resign, don't capitulate and hire a good lawyer immediately. If you don't have the cashflow, but are defending a huge pile of stock about to IPO you'll probably find a lawyer that will defer payment.

2. Start documenting everything including making timestamped notes of what was said to you verbally.

Then play it out. Read all documentation the company has given you and fully understand it. They usually have to fire you for cause for you to lose your options, so figure out what the angle is they're using and make sure they don't have cause. Be 100% professional and non-confrontational, but ask the hard questions when you need to. DO NOT treat the company's staff (including your boss) or their legal team as your own legal counsel. They will try to give you "good advice" or intimidate you. They will claim things are "standard". Get your own info and use your own lawyer.

Often simply retaining counsel lets the opposing team know you're serious and professional, and worst case it will up any settlement.

PS: I'm an exec, not an employee, so technically I'm the guy on the other side of the org chart that Micah (see below) is describing. But assuming the report is accurate, this is unacceptable behavior and I'd like to see more employees who take a risk on startups getting what they deserve and enforcing their rights.

CA law provides for at will employment but if the original option was not contingent on specific performance beyond what is needed to continue as an employee, and they are willing for the employee to continue working there provided they surrender their stock they may be in more of a gray area. It's in the nature of a targeted pay cut but it doesn't seem to involve a demotion or change in position, they are effectively approach certain employees and telling them, "we are paying you too much, accept a reduction in your total compensation or we will terminate you."

Terminating employees only to avoid their stock vesting - as opposed to valid performance reasons - is just as scummy.

I also can't see how employees who give up their stock and remain with the company can possibly have a healthy relationship moving forward.

They would also have to remember to put "no callbacks times infinity".