Sponsors (2)
The bill creates a federal Advocate and support functions to expand employee ownership and help resolve ESOP disputes—potentially widening ownership and succession options for small businesses—while imposing modest federal costs and carrying risks that promoting ESOPs without strong safeguards or transparent appointment processes could financially harm workers or politicize the post.
Small-business owners and their employees gain federal outreach, education, coordination, and a dedicated Advocate to expand employee ownership and succession-planning options, potentially increasing access to capital and ownership opportunities.
Workers and employee-owners receive a federal liaison and dispute-assistance pathway with the Department of Labor to help resolve ESOP-related issues and protect participants' interests.
Annual public reports increase transparency about federal activities to promote employee ownership and interactions between the government and ESOP stakeholders.
Promoting ESOPs may favor certain business-succession models that, if poorly structured or advised, could expose workers to fiduciary and financial risks (loss of retirement value or job-related financial harm).
Placing the appointment outside competitive/Senior Executive Service rules could reduce hiring transparency or merit-based selection for the Advocate position, raising concerns about politicization or weaker qualifications.
Taxpayers may bear additional costs to fund the Advocate's office and related operations.
Based on analysis of 2 sections of legislative text.
Establishes a Department of Labor Advocate for Employee Ownership to support ESOPs, coordinate outreach, assist disputes, advise on rules, and deliver annual reports to Congress.
Introduced July 28, 2025 by Margaret Wood Hassan · Last progress July 28, 2025
Creates a new Advocate for Employee Ownership inside the Department of Labor’s Employee Ownership Initiative to promote and support employee stock ownership plans (ESOPs). The Secretary of Labor appoints the Advocate (without normal competitive or Senior Executive Service appointment rules); the Advocate will provide outreach, technical assistance, coordination, recommendations, and must be consulted on DOL rulemaking affecting ESOPs. The position is paid at Executive Schedule level V, must file an annual public report to Congress by December 31 detailing activities and recommendations, and is authorized such sums as necessary for compensation.