ESOP shares valid after termination?

My previous employee was just purchased 6 months ago and the new owner is closing the ESOP. I left my former employee 2 years ago and have not been paid my shares yet. I understand they have up to 6 years to pay. The current employees are being paid out at 2X the share value. I was told that terminated employees will only be paid at face value not the 2X - is that legal? I guess the question is - are my shares still valid shares as a terminated employee?

The answer is all depends.  One needs to know a number of facts. 

Did your last participant certificate say your account was in shares still or cash?

Some ESOPs do what is called segregation to their terminated employees.  Segregation is when the accounts shares are sold and your balance is put into a cash investment.  If that happened you don't have any shares in the plan.  If that didn't happen you do have shares.  

So go back and find your most recent certificate and see if it says your account balance is in shares or cash. 

I will say if your account was still invested in company shares at the time of the sale all shares have to be treated the same.    It is just having a balance in an ESOP doesn't mean you always have shares in an ESOP  

If you can't find your most recent certificate from the plan you might want to make inquires to find out if the plan puts the account balances of terminated employees into cash investments shortly after people terminate or not. 

I found my last certificate and as you noted it says cash. Thanks for the explanation!