What does Preamble of Employee Ownership Representation Act of 2025 do?

This bill amends the Employee Retirement Income Security Act of 1974. The amendment expands the membership of the Advisory Council on Employee Welfare and Pension Benefit Plans. The expansion includes representatives of employee ownership organizations.

What does SHORT TITLE. of Employee Ownership Representation Act of 2025 do?

This bill is formally titled the Employee Ownership Representation Act of 2025.

What does EXPANSION OF THE ERISA ADVISORY COUNCIL. of Employee Ownership Representation Act of 2025 do?

This section amends Section 512(a) of the Employee Retirement Income Security Act of 1974. The number of members of the Advisory Council on Employee Welfare and Pension Benefit Plans is increased from fifteen to seventeen. The number of members with specified expertise is increased from eight to ten. Two members of the Advisory Council must be representatives of employee ownership organizations. The Secretary of Labor must nominate the first two employee ownership organization representatives within one year of the Act's enactment.

What does OFFICE OF EMPLOYEE OWNERSHIP. of Employee Ownership Representation Act of 2025 do?

This section establishes the Office of Employee Ownership within the Department of Labor. The Office will be established within 90 days of the Act's enactment and will operate outside the Employee Benefits Security Administration. The Secretary of Labor will appoint a Director to head the Office, and the Director can hire necessary staff. The Office is responsible for carrying out the Employee Ownership Initiative established under section 346 of the SECURE 2.0 Act of 2022 (29 U.S.C. 3228).

What does ADVISORY COUNCIL ON EMPLOYEE OWNERSHIP. of Employee Ownership Representation Act of 2025 do?

This section establishes an Advisory Council on Employee Ownership (the "Council"). The Council will consist of 7 members appointed by the Secretary of Labor. The Council's membership will include representatives of employees, companies with employee stock ownership plans or eligible worker-owned cooperatives, employee stock ownership plan providers, and relevant associations. No more than 4 Council members can be from the same political party. Members will serve two-year terms and may be reappointed. A majority of the Council members constitute a quorum. The Council's duty is to advise the Secretary of Labor and provide recommendations regarding the Secretary's functions under the Act. The Council must meet at least four times annually and submit an annual report to the Secretary of Labor. The Secretary of Labor will provide an Executive Secretary and other necessary support services to the Council. Members of the Council will receive compensation equivalent to the annual rate of basic pay for Level IV of the Executive Schedule, plus travel expenses.

What does ESTABLISHMENT OF THE ADVOCATE FOR EMPLOYEE OWNERSHIP. of Employee Ownership Representation Act of 2025 do?

This section establishes an Advocate for Employee Ownership within the Department of Labor. The Advocate will consult with the Employee Ownership Initiative and act as a liaison between various stakeholders, including employers, workers, and plan sponsors. The Advocate's duties include providing public education, assisting in resolving disputes related to employee stock ownership plans (ESOPs), and recommending legislative and administrative changes. The Advocate will coordinate with other federal agencies and state/local governments to promote employee ownership. The Secretary of Labor will solicit advice from the Advocate when developing regulations related to ESOPs. The Advocate will receive compensation equivalent to a position at level V of the Executive Schedule. The Advocate must submit an annual report to Congress detailing activities, challenges, and recommendations related to employee ownership. The annual report will also be made publicly available.

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Employee Ownership Representation Act of 2025

Last updated: 10/17/2025 · Introduced: 5/13/2025

Author: Bill Cassidy (R-LA)

TL;DR (AI)

This bill expands the ERISA Advisory Council by adding representatives from employee ownership organizations and increasing the total membership.
The bill establishes a new Office of Employee Ownership within the Department of Labor to implement the Employee Ownership Initiative.
It creates an Advisory Council on Employee Ownership and an Advocate for Employee Ownership to advise the Secretary of Labor and promote employee ownership models.

119th Congresspassed senateOfficial page

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Other Sections

Includes provisions on preamble, short title., and 4 more.

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