Sponsors (2)
The bill increases federal support, coordination, and transparency to expand employee ownership and protect worker rights in ESOPs, at the cost of adding a paid federal advocate position with nonstandard hiring authority and the possibility of future tax or regulatory changes that could affect businesses and taxpayers.
Small-business owners and employees gain expanded federal support (a dedicated liaison and interagency coordination) that improves access to information, capital, and succession-planning resources to convert firms to employee ownership or set up ESOPs.
Workers in ESOPs and other employee-ownership models get a federal resource to help resolve disputes with the Department of Labor and facilitate communications about ownership rights and protections.
Federal public reporting increases transparency about government efforts, barriers, and recommended reforms to expand employee ownership, giving taxpayers and stakeholders visibility into progress and policy ideas.
The advocate's recommendations to Congress and agencies could prompt future tax or regulatory proposals that impose new costs or compliance burdens on businesses and taxpayers.
The position is appointed without standard competitive hiring or Senior Executive Service rules, reducing usual hiring safeguards and potentially limiting transparency or merit-based selection in filling the role.
Creates a new Executive Schedule V–paid federal position, increasing federal personnel costs borne by taxpayers.
Based on analysis of 2 sections of legislative text.
Establishes an Advocate for Employee Ownership at the Department of Labor to promote ESOPs, coordinate across agencies, assist parties, and issue an annual public report.
Official title: Require the Secretary of Labor to appoint an Advocate for Employee Ownership within the Employee Ownership Initiative, and for other purposes.
Introduced July 28, 2025 by Margaret Wood Hassan · Last progress July 28, 2025
Creates an Advocate for Employee Ownership within the Department of Labor to promote and support employee ownership arrangements, especially employee stock ownership plans (ESOPs). The Advocate will do outreach, education, dispute assistance, interagency coordination, and make legislative and administrative recommendations, and must deliver a public annual report to Congress. The position is paid at Executive Schedule level V and the statute authorizes whatever sums are necessary to cover that compensation. The Advocate is placed inside the existing Employee Ownership Initiative, is appointed without regard to competitive or SES appointment rules, and must be consulted by the Secretary of Labor on ERISA regulations and interpretations affecting ESOPs.