Sponsors (18)
The bill trades some shareholder flexibility and potential market frictions (reduced buybacks, higher compliance and litigation risk) for greater worker representation on corporate boards and clearer federal rules aimed at steering companies toward longer-term investment and oversight.
Employees at public companies gain the right to elect representatives to corporate boards (one-employee–one-vote), giving workers direct voice in corporate decisions and more influence over workplace and strategic outcomes.
Establishes a federal rulemaking process (SEC with NLRB consultation) and clearer definitions of covered issuers/exchanges, creating more predictable, enforceable rules for employee director elections and market participants.
Limits on share buybacks may redirect corporate cash toward dividends, capital investment, or higher wages, potentially increasing productive investment and benefiting employees and small businesses.
Shareholders and individual investors lose a widely used tool (share buybacks) to receive cash returns, which could reduce share prices and investor returns, especially for retirement and household portfolios.
Restrictions on buybacks may reduce stock market liquidity and increase price volatility for affected listed companies, raising trading risk for investors and stress on financial intermediaries.
Implementing employee elections and new SEC rules will raise compliance, administrative and enforcement costs for issuers and exchanges, possibly increasing listing or transaction costs that get passed to companies or investors.
Based on analysis of 4 sections of legislative text.
Bans exchange-traded share buybacks and requires exchange-listed companies to have employee-elected board directors, with SEC rulemaking and two-year implementation for board seats.
Official title: To prohibit public companies from repurchasing their shares on the open market, and for other purposes.
Introduced April 30, 2026 by Jesús García · Last progress April 30, 2026
Bans corporate open-market share repurchases on national securities exchanges and requires that exchange-listed companies give employees a voice on their boards by ensuring a minimum number of directors are elected by employees in one-employee–one-vote elections. The SEC must write rules to implement the buyback ban and to set fair, democratic procedures so companies achieve the employee board representation within two years of enactment.