Employee Ownership Representation Act of 2025
The Employee Ownership Representation Act of 2025 proposes a broad set of changes to federal employee-ownership policy. Key elements include expanding the ERISA Advisory Council to add two representatives from employee ownership organizations (bringing total membership to 17 instead of 15, with a shift in internal structure), creating a new Office of Employee Ownership within the Department of Labor (outside the EBSA office), establishing a new Advisory Council on Employee Ownership (7 members with specific representation requirements), and creating an Advocate for Employee Ownership to coordinate outreach, education, dispute resolution, and potential legislative/administrative improvements related to employee ownership, including ESOPs and worker-owned cooperatives. The act also requires annual reporting on activities, and provides for funding to implement these provisions. Some provisions reference the SECURE 2.0 framework and existing employee ownership initiatives. In short, the bill institutionalizes and expands federal attention to employee ownership by adding dedicated representatives, creating new offices and an advocate role, and codifying regular input and reporting on ESOPs and worker-owned models.
Key Points
- 1Expands the ERISA Advisory Council: increases total members to 17 and adds two representatives of employee ownership organizations; changes the composition within the council’s defined categories.
- 2Creates the Office of Employee Ownership in the Department of Labor: established within 90 days of enactment, led by a Director, and staffed as needed; tasked with carrying out the Employee Ownership Initiative from the SECURE 2.0 Act.
- 3Establishes the Advisory Council on Employee Ownership: a new 7-member council appointed by the Secretary of Labor with defined representation—employees (4), employers with ESOPs or eligible worker-owned cooperatives (1), ESOP providers (1), and associations for ESOPs or worker-owned cooperatives (1); terms are 2 years; meetings at least four times per year.
- 4Creates the Advocate for Employee Ownership: a new official within the Office of Employee Ownership who serves as liaison, educator, and coordinator among employers, employees, ESOP sponsors, and other stakeholders; duties include identifying regulatory/legislative changes, improving access to capital, resolving certain types of disputes with the Department of Labor, and promoting employee ownership nationally.
- 5Reporting and funding: the Advocate must issue an annual public report summarizing activities, requests for assistance, problems encountered, and policy recommendations; authorization of appropriations to support the Advocate’s duties is provided.