Effective Date: January 1, 2024 | Last Updated: March 15, 2024
These Terms of Service ("Terms") govern your use of the BenefitsFront platform, including our web application, mobile services, and all related services (collectively, the "Services") provided by BenefitsFront, Inc., a Delaware corporation ("BenefitsFront," "we," "us," or "our"). Please read these Terms carefully before using our Services. By creating an account or using any portion of the Services, you agree to be bound by these Terms.
BenefitsFront operates a participation financing platform that advances funds to eligible employees ("Participants") to fund their employer-sponsored Employee Stock Purchase Plan ("ESPP") contributions and 401(k) contributions. BenefitsFront is not a lender, bank, or investment advisor. Advances are originated by Meridian Bank, N.A., Member FDIC ("Bank Partner"), pursuant to a license agreement with BenefitsFront. BenefitsFront facilitates the profit-sharing arrangement between Participants and the Bank Partner.
The Services include: (a) an online platform for employees to enroll in ESPP participation financing; (b) an employer portal for benefit administrators to manage employee participation; (c) an advance funding mechanism that deposits funds equal to ESPP contributions into Participant accounts; (d) profit-sharing calculation and disbursement services following ESPP share sales.
BenefitsFront's compensation for ESPP financing services consists exclusively of a profit-sharing fee ("Profit Share Fee"):
To be eligible for BenefitsFront Services, you must: (a) be an employee of an employer that has entered into an Employer Service Agreement with BenefitsFront; (b) be enrolled or eligible to enroll in your employer's ESPP or 401(k) plan; (c) be at least 18 years of age; (d) reside in a state where BenefitsFront holds the applicable license; (e) have a valid U.S. bank account; (f) not have any outstanding defaulted obligations to BenefitsFront. BenefitsFront does not conduct credit checks. Eligibility is determined based on employment verification only.
By accepting an advance, you authorize BenefitsFront to: (a) deposit advance funds into your designated bank account within two (2) business days of the ESPP offering period commencement date; (b) direct the proceeds from your ESPP share sale to first repay the advance principal, then the Profit Share Fee, with the remainder disbursed to you. You agree to take all actions necessary to facilitate same-day sale of ESPP shares and direct proceeds as described. You may not withdraw from the ESPP or transfer pledged shares during an active offering period without BenefitsFront's prior written consent.
If you separate from employment during an offering period, your ESPP participation will be governed by your employer's plan terms. In most cases, contributions made to the date of separation will be returned to you. You must notify BenefitsFront immediately upon separation. Repayment of the advance from returned contributions will be required within five (5) business days of separation.
Stock Price Risk: While the ESPP discount typically provides a built-in profit, there is no guarantee that ESPP shares will be profitable. If the stock price falls by more than the ESPP discount percentage during the offering period, you may sell shares at a loss relative to market price. However, because you purchase at a discount, you are better positioned than an open-market buyer. BenefitsFront does not guarantee profits.
Tax Risk: ESPP participation and profit-sharing income have tax implications. Ordinary income tax applies to ESPP discount at sale (for qualifying dispositions, some income is treated as capital gain). Profit Share Fee payments to BenefitsFront are reported on Form 1099-MISC. Consult a tax professional regarding your specific situation. BenefitsFront does not provide tax advice.
Employment Risk: Your ability to repay the advance depends on continued employment through the ESPP purchase date. BenefitsFront strongly recommends considering employment stability when enrolling.
Employers accessing the BenefitsFront employer portal agree to use the portal solely for legitimate HR and benefits administration purposes. Employers may not use the portal to access employee financial data beyond what is necessary for benefits administration. Employer portal access is governed by the Employer Service Agreement, which is incorporated herein by reference.
All content, software, designs, and features of the BenefitsFront platform are owned by BenefitsFront, Inc. or its licensors and are protected by U.S. and international intellectual property laws. You are granted a limited, non-exclusive, non-transferable license to access and use the Services for your personal or authorized business purposes. You may not copy, modify, distribute, sell, or lease any portion of the Services without BenefitsFront's express written consent.
Your privacy is important to us. Our collection, use, and sharing of personal and financial data is governed by our Privacy Policy, which is incorporated into these Terms by reference. By using the Services, you consent to the data practices described in the Privacy Policy. You represent that all information you provide is accurate and complete.
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, BENEFITSFRONT AND ITS AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, AND LICENSORS SHALL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, INCLUDING WITHOUT LIMITATION LOSS OF PROFITS, DATA, OR GOODWILL, ARISING OUT OF OR IN CONNECTION WITH YOUR USE OF THE SERVICES.
IN NO EVENT SHALL BENEFITSFRONT'S TOTAL CUMULATIVE LIABILITY EXCEED THE GREATER OF: (A) THE TOTAL FEES PAID BY YOU TO BENEFITSFRONT IN THE TWELVE MONTHS PRECEDING THE CLAIM; OR (B) ONE THOUSAND DOLLARS ($1,000).
You agree to indemnify, defend, and hold harmless BenefitsFront and its affiliates, officers, directors, employees, agents, and licensors from and against any and all claims, liabilities, damages, losses, costs, and expenses (including reasonable attorneys' fees) arising out of or related to: (a) your use of the Services; (b) your violation of these Terms; (c) your violation of any applicable law or regulation; or (d) your breach of any representation or warranty contained herein.
PLEASE READ THIS SECTION CAREFULLY. IT AFFECTS YOUR LEGAL RIGHTS. Any dispute, claim, or controversy arising out of or relating to these Terms or the Services ("Dispute") shall be resolved exclusively by binding arbitration administered by the American Arbitration Association ("AAA") under its Consumer Arbitration Rules. Arbitration shall take place in Wilmington, Delaware, unless otherwise agreed. The arbitrator's decision shall be final and binding. YOU WAIVE YOUR RIGHT TO A JURY TRIAL AND TO PARTICIPATE IN ANY CLASS ACTION LAWSUIT OR CLASS-WIDE ARBITRATION.
Small claims court actions seeking relief within the applicable jurisdictional limit are exempt from mandatory arbitration. Either party may seek emergency injunctive or other equitable relief in any court of competent jurisdiction.
These Terms are governed by the laws of the State of Delaware, without regard to its conflict of law principles. To the extent any dispute is not subject to mandatory arbitration, you consent to exclusive jurisdiction and venue in the state and federal courts located in New Castle County, Delaware.
BenefitsFront may suspend or terminate your access to the Services at any time for any reason, including without limitation if you violate these Terms, provide false information, or engage in fraudulent activity. Upon termination, any outstanding advance obligations remain immediately due and payable. Termination does not affect any rights or obligations that accrued prior to the termination date. You may close your account at any time by contacting contact@benefitsfront.com, subject to any outstanding financial obligations.
BenefitsFront reserves the right to modify these Terms at any time. Material changes will be communicated via email to your registered address at least 30 days prior to taking effect. Continued use of the Services following the effective date of any changes constitutes your acceptance of the revised Terms.
For questions about these Terms or the Services, please contact us at:
BenefitsFront, Inc.
2711 Centerville Road, Suite 400
Wilmington, DE 19808
Email: contact@benefitsfront.com
Phone: 1-800-BENEFIT