The new product unlocks financial freedom for millions of employees by predicting personalized PTO usage and advancing the cash value of unused time off
NEW YORK, June 1, 2023 /PRNewswire/ — Today, Sorbet, a paid-time off (PTO) solutions and fintech platform, announced the release of a new product that allows employees to directly apply and access the value of their unused PTO to unlock an overlooked financial asset for millions of Americans. The new product is both available to employees by applying directly and to employers who wish to provide additional financial wellness benefits to their employees as a voluntary benefit.
Sorbet’s on-demand PTO cash advance solution allows employees to access the cash value of their PTO as they accrue it. According to Sorbet’s data, an average employee in the US has over $3,000 in unused PTO at any given moment. Instead of waiting until they leave the company, Sorbet advances the payout, so employees can unlock more compensation without dipping into salaries or partaking in risky payday loans. To qualify, employees must be 18 years of age or older, a legal resident of the United States with a W2-paying job, and work for a company with a PTO policy that allows carry over and includes a PTO payout at termination.
- Amount: The maximum amount is equivalent to Sorbet’s predicted value of an employee’s unused or accrued PTO days at termination.
- Speed: As soon as Sorbet approves an employee’s application, they can receive their money on a prepaid Sorbet debit card within 1-5 business days.
- Repayment: Participants pay back Sorbet monthly interest-only payments during the advance term and repay the full remaining amount when they leave their company and receive their PTO payout or after two years, whichever comes first.
- APR: 9.99% – 18%
Sorbet’s unique ability to predict PTO usage over time, allows it to value unused PTO payouts which are based on the employee’s pay rate, the employer’s policy and PTO usage habits. Participants pay Sorbet back when they leave their company and receive their PTO payout or after 24 months, whichever comes first.
Sorbet already has thousands of applicants and the equivalent of over $7.5 million in PTO value applied which is being spent on a wide variety of uses from paying rent to funding their next vacation. Nearly 40% of the applicants are between 30- and 40-years-old from some of the largest employers in the country, including Walmart, Amazon, Home Depot, and Target. Sorbet is currently offering the product in Colorado, Florida, Illinois, Massachusetts, New York, New Jersey, Texas and Virginia, and will be expanding across the country throughout this year.
“With rising prices and a looming recession, Sorbet helps employees by unlocking extra compensation that they wouldn’t be able to access otherwise,” said Veetahl Eilat-Raichel, CEO + co-founder of Sorbet. “Payday loans are predaceous and target lower-income workers, and earned wage access solutions cannibalize employees’ paychecks to create a never ending cycle of dependency. On the other end of the spectrum, high earners often borrow against their 401k. There is a massive opportunity for the gap in between to be offering a much needed financial benefit by advancing earned, unused PTO.”
Sorbet is a one-of-its-kind PTO platform that empowers employees to advance the value of their unused paid time off at any point. Sorbet helps employees understand how they are using their time off can provide access to the immense financial value of unused time off while allowing companies to attract and retain high quality talent, reduce employee turnover, increase productivity and thrive in an economic downturn.
Those interested can use the FREE calculator to determine the value of their PTO they may be able to unlock with Sorbet.
Sorbet is a game-changing fintech solution that allows employees to unlock the value of their unused PTO. With Sorbet, employees can now access a previously untapped source of compensation – their unused PTO payout, usually received at termination, without having to wait until they leave their company. No need to dip into your paycheck, take predatory payday loans or lend against your 401k. With Sorbet, employees can finally take control of their finances and enjoy a more secure financial future.