S. 2474: Advocate for Employee Ownership Act

This bill, known as the Advocate for Employee Ownership Act, aims to enhance employee ownership in businesses by establishing a dedicated position within the U.S. Department of Labor. Here’s a summary of its key provisions:

Appointment of an Advocate

The bill mandates the appointment of an Advocate for Employee Ownership by the Secretary of Labor. This advocate will be part of the Employee Ownership Initiative, which was established under the SECURE 2.0 Act of 2022.

Duties of the Advocate

The Advocate for Employee Ownership will have several responsibilities, which include:

• Consulting with leaders of the Employee Ownership Initiative.
• Acting as a liaison among the Department of Labor, employee ownership advocates, employers considering employee ownership, workers interested in ownership, and other stakeholders.
• Providing public education and assistance to promote employee ownership, including the utilization of Employee Stock Ownership Plans (ESOPs).
• Assisting in resolving disputes involving employee stock ownership plan sponsors or participants and the Department of Labor.
• Identifying and recommending changes to laws or policies that affect access to capital for promoting employee ownership practices.
• Coordinating outreach and educational efforts with various federal and state agencies to inform stakeholders about employee ownership options.

Regulatory Input

The Secretary of Labor is required to seek input from the Advocate when developing regulations or guidelines related to employee stock ownership plans.

Compensation and Reporting

The Advocate will receive compensation comparable to other government officials at a specific executive pay level.

Furthermore, the Advocate must submit an annual report detailing activities, assistance requests, and evaluations of effectiveness. This report will also address challenges and propose actions to promote employee ownership.

Public Accessibility

Each annual report will be made available to the public, ensuring transparency in the operations and contributions of the Advocate.

Funding Authorization

The bill includes provisions for necessary funds to support the activities of the Advocate for Employee Ownership.

Definition of Employee Stock Ownership Plan

The bill specifies that the term "employee stock ownership plan" refers to the definition found in the Internal Revenue Code.

Relevant Companies

None found.