Employment Law Questions? Ask an Employment Lawyer.
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If you're referring to a situation in which the employer has granted stock options or an employer controlled 401k, and has changed the policy so that dividends must be reinvested, then that is lawful. The employer has the power to regulate whether dividends are paid out or reinvested. If the employee does not like the terms, then the employee can opt out of the program. Of course, one would expect the employer to inform the employees when there is a change; but if it does not, the change is still lawful.
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