A California Court of Appeal recently upheld a policy providing that employees who resign or are terminated for cause during a two-year vesting period under an employer's stock purchase plan forfeit not only the purchased stock but also the money used to purchase the stock. In Schachter v. Citigroup, a class action had challenged such a policy, arguing that the employer's refusal to refund an amount equal to the value of the funds used to purchase the stock constituted an illegal failure to pay all wages due at termination of employment as required by California Labor Code Sections 201 and 202. The Court of Appeal disagreed, holding that the employees had voluntarily participated in the stock purchase program using the wages they had already earned. The court reasoned that the payment of wages occurs when the employer directs the funds allocated by the employee to the purchase of the shares pursuant to the terms of the plan. Thus, the employee received the wages and cannot complain of non-payment at termination.