DOL Secretary Praises ESOPs and Promises Support

In a keynote address today to the ESOP Association, Secretary of Labor Lori Chavez-DeRemer expressed her support of ESOPs. “I want you to know that the Trump administration recognizes the real transformative power of employee stock ownership plans.” Referring to complaints by some in the ESOP community regarding how the Department of Labor (DOL) has conducted its regulatory oversight of ESOPs, she commented that “we’re here to undo the culture of harassment. . . . I understand how poor regulation and misguided agency agendas can directly impact business success. . . . It is my mission to support you, not regulate you into oblivion.”

Commenting on the proposed valuation regulations submitted in the final months of the Biden administration and then withdrawn by the Trump administration along with a safe harbor valuation rule, Chavez-DeRemer stated that in formulating a replacement rule, “we do value your comments through this process" and that the DOL should promote ESOPs “rather than discouraging them.”

Chavez-DeRemer said, “We know that when workers have a voice and a stake, they are more invested in their company’s mission, outcome and future . . . the Department of Labor is with you in this mission. . . . Together we will make sure ESOPs are supported and thriving.” She also spoke of the proposed Employee Equity Investment Act, which would create an SBA program to provide loan guarantees for investment funds devoted to expanding employee ownership.