What is employee ownership?

Employee ownership, also called worker ownership, enables workers across a company to have a financial stake in the business.

Employee ownership can take different forms, including employee stock ownership plans (ESOPs), worker cooperatives, and employee ownership trusts (EOTs). These models are designed to allow all workers to share in ownership, as long as they meet basic criteria laid out in the governing documents. Some companies offer other ways for employees to hold equity, such as stock options or stock grants. These approaches are often more limited in who can participate, but they can be structured to include workers at all levels.

The Department’s Employee Ownership Initiative encourages employee ownership through models that are open to the general workforce, not just senior leaders.

Learn more about employee ownership.

What is the Employee Ownership Initiative?

The Department of Labor’s Employee Ownership initiative was launched in 2023 as part of the Worker Ownership, Readiness, and Knowledge (WORK) provisions set forth in section 346 of the SECURE 2.0 Act of 2022. These provisions include a few different ways in which Congress sought to promote worker ownership and educate both workers and employers about the options available. 

As part of the Department’s Employee Ownership Initiative, EBSA established a new Division of Employee Ownership within EBSA’s Office of Outreach, Education and Assistance. The division’s primary mandate is to encourage new and existing state programs that promote employee ownership and employee participation through: 

• Outreach and education about different forms of worker ownership, business succession planning, and employee participation
• Technical assistance for companies transitioning to employee ownership, beginning with assessing feasibility
• Training in worker participation and financial education techniques

Learn more about employee ownership programs in the states.

The Division of Employee Ownership acts as a clearinghouse for information and resources and provides support and advice to state leaders and other stakeholders who share our goal of increasing employees’ financial security and participation in their workplaces. We look forward to engaging with workers, business owners and employers, service providers, trade and professional organizations, unions, state and local government leaders, and other stakeholders as we develop this initiative.

Please contact the Division of Employee Ownership at Ownership@dol.gov.

Are government grants available for employee ownership programs?

In February 2026, Congress appropriated $2 million within the Consolidated Appropriations Act of 2026 for grants authorized by section 346 of the SECURE 2.0 Act of 2022. Check back here for more information in the coming months.

Disclaimer: Throughout the Employee Ownership Initiative website, EBSA provides links to external resources where readers can get more information on various topics. The resources linked do not necessarily reflect the views or policies of the Employee Benefits Security Administration (EBSA) or the U.S. Department of Labor. In addition, the mention of trade names, commercial products, or organizations does not imply endorsement by the U.S. Government or EBSA.