Yes. If an employee receives cash and the retention period is not fully fulfilled, then any portion that has not vested must be repaid within a 60-day repayment period (60 days from the last day of the month following termination called the “Full Repayment Period”). If, after the Full Repayment Period, there is a remaining balance, this balance converts to a 1 or 3 year (employee choice) interest-bearing installment loan, paid monthly over 12 or 36 months, as the case may be. If the employee is late on their monthly payments, their account will default and Keep will collect any remaining balance.
Are employees legally responsible for repayment if they leave before their cash plan fully vests?
Varun Murthy
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