Forgivable loans are financial instruments that employers use to incentivize employees to stay with the company and also encourage them to perform at a higher level. Employee forgivable loans are often stretched over a period of time and for every year the employee remains (or any other agreed period), a part of the loan is forgiven. The net result is that if the employee remains in place for the agreed period of time, then the entire loan is forgiven. However, disputes can often arise regarding the terms of forgivable loans. When this happens, you must hire an employment dispute attorney to represent you and help settle the case on favorable terms.
At Weltz Law, our legal team has years of experience dealing with employee-forgivable loans, and we understand what it takes to win in these types of cases. To speak to a lawyer at our firm about your case, please call (877) 905-7671 today.
Employee forgivable loans help to incentivize employees not to leave a particular employer. A good example is an employee forgivable loan of $50,000 that is spread over five years. The employer then agrees with the employee that for every year that the employee remains in employment, the employer exempts (or forgives) the employee from paying $10,000. This means that if the employee was to leave after one year, they would have to pay $40,000. If they were to leave after three years, they would have to pay $20,000 and so on.
Given that this is usually a contractual agreement, there is always the possibility that disputes may arise. This is what leads to employee forgivable loan cases where the two parties may dispute the terms of the contract.
If you are involved in an employee forgivable loan case, it is important that you speak to a law firm that is experienced in dealing with employment-related disputes. This will increases your chances of winning and may save you thousands of dollars in loan repayments. Many of these cases are based on the interpretation of employment contracts and the lawyers at Weltz Law are here to help you understand all of your legal options so can make informed decisions.
At Weltz Law, we take great pride in providing our clients with the benefit of our 25 years of legal experience. We understand employment laws and are well-equipped to help you with any employment case that you may have. Our lawyers will take time to understand the unique circumstances of your case and we will work hard to deliver the victory that you deserve. We offer our clients an initial consultation session for free and you can be sure that if we take on your case, we will fight for your interests every step of the way. We will also keep you updated at every stage of the legal process, so you are always in control.
If you’re ready to set up a free case consultation with Weltz Law, then please give us a call at (877) 905-7671 or contact us online.
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