This bill is designed to make it easier for employees to own stock in their companies through a special retirement savings plan called an ESOP (Employee Stock Ownership Plan). Right now, about 40% of American workers have no retirement savings at all, but this bill aims to change that by encouraging more companies to let their employees become partial owners.

The bill does several practical things: First, it creates a new office in the Treasury Department to teach companies and workers about employee ownership and help companies set up these plans. Second, it fixes a problem where companies that become employee-owned through an ESOP lose their "small business" status and can't access small business benefits anymore—even though they're still the same size. Under this bill, they'll keep their small business status. Third, it creates a new position called the Advocate for Employee Ownership in the Labor Department to help workers and companies navigate these plans, resolve disputes, and recommend improvements.

The main benefit is that employees who own stock in their company through an ESOP build retirement savings while working, and studies show they also tend to have more job security. The bill essentially removes barriers that currently discourage companies from becoming employee-owned and creates government support to help make employee ownership more common across America.

Promotion and Expansion of Private Employee Ownership Act of 2023

Cardin, Benjamin L.

Promotion and Expansion of Private Employee Ownership Act of 2023 This bill accelerates to the enactment date of this bill the deferral of tax (currently, after December 31, 2027) on sales of employer stock to employee stock ownership plans (ESOPs) sponsored by S corporations. It also eliminates the limitation on the amount that may be deferred. The Department of the Treasury must establish the S Corporation Employee Ownership Assistance Office to foster increased employee ownership of S corporations. The office must provide education and outreach about the benefits of employee ownership of S corporations and technical assistance to assist S corporations in sponsoring ESOPs. The bill directs the Department of Labor to appoint an Advocate for Employee Ownership.