News Release
US Department of Labor report to Congress shows continued growth of employee ownership, details initiative to promote worker-owned businesses
WASHINGTON – The U.S. Department of Labor today announced that its Employee Benefits Security Administration issued a report to Congress providing updates on its initiative to promote employee ownership, increase workers’ financial security, and enhance their participation in the workplace.
As outlined in the report, employee ownership – through employee stock ownership plans, worker cooperatives, or employee ownership trusts – has grown over the past 10 years, with the number of ESOP participants increasing by 8% and the amount of worker cooperatives more than doubling. Additionally, employee ownership trusts have grown in popularity since the first one was established in the U.S. in 2014.
“Employee Stock Ownership Plans transform workers into stakeholders,” said Assistant Secretary of Labor for Employee Benefits Security Daniel Aronowitz. “I am proud of the work being done by the Department of Labor, as well as a growing number of states and community stakeholders, to make employee ownership an option for more American workers.”
The report also provides Congress with an update on EBSA’s Division of Employee Ownership, which was created in 2023 to support the creation and expansion of worker-owned businesses. The division’s initial activities include:
- Outreach, education, and stakeholder relations aimed at advancing the Employee Ownership Initiative.
- Support for new and existing state employee ownership programs.
- Early-stage technical assistance for employers and employees on questions related to employee ownership.
- Expansion of EBSA’s Employee Ownership Initiative website to educate the public about employee ownership and participation, with special attention to how states are promoting employee ownership.
The initiative’s website serves as a central location for resources providing simple, clear guidance on employee ownership to American businesses and workers. It also catalogs the efforts of state employee ownership programs already operating in California, Colorado, Iowa, Massachusetts, Michigan, New Jersey, Ohio, and Vermont.
The SECURE 2.0 Act of 2022’s Worker Ownership, Readiness, and Knowledge provisions directed the department to establish the Employee Ownership Initiative to promote employee ownership and employee participation in the workplace.
The report also describes future work that EBSA aims to carry out to expand this initiative, subject to available resources.
EBSA ensures the security of retirement, health, and other job-based benefits for American workers and their families. The agency is responsible for protecting more than 156 million workers, retirees, and their families, who are covered by approximately 2.6 million health plans, 801,000 private retirement plans, and 514,000 additional welfare benefit plans. Together, these plans hold about $13.8 trillion in assets.
Employers and workers can contact EBSA at askebsa.dol.gov or call 866-444-3272 toll-free for help with private sector job-based retirement and health plans.
Read EBSA’s report to Congress.
