Employee Ownership Representation Act of 2025

The Employee Ownership Representation Act of 2025 would reshape how employee ownership interests are represented in federal employee benefits policy and outreach. It expands the ERISA Advisory Council by adding two representatives from employee ownership organizations and increases the total council size. It also creates a new Office of Employee Ownership within the Department of Labor (outside the Employee Benefits Security Administration) to advance employee ownership initiatives, led by a new Director. Separately, the bill establishes an Advocate for Employee Ownership to coordinate outreach, education, dispute resolution, and legislative/administrative recommendations to promote employee ownership practices (including ESOPs and worker-owned cooperatives). Together, these changes aim to strengthen federal promotion, guidance, and oversight of employee ownership across agencies. Potential impact includes greater input from employee ownership groups in federal pension/benefit policy; enhanced government coordination on ESOPs and worker-owned models; and ongoing education and facilitation to expand employee ownership as a business succession option. Funding is authorized as needed for the Advocate’s duties, and the initiatives align with the SECURE 2.0 Act’s Employee Ownership provisions.