Source: United States Senator for Florida Marco Rubio
Every year, hundreds of businesses across the country restructure to make employees the owners of the companies they work for. Despite the many benefits of employee ownership, it is far from the norm. This is due to financial and regulatory barriers that make selling a company to employees burdensome for sellers.
U.S. Senators Marco Rubio (R-FL) and Chris Van Hollen (D-MD) introduced the Employee Equity Investment Act, which would make it easier for private companies to transfer ownership of the business to their employees.
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“Employee ownership empowers workers and improves productivity. The Employee Equity Investment Act would help facilitate and promote the sale of companies to their employees. By encouraging a system that allows employees to invest in themselves and the companies they work for, we can strengthen our economy and keep American companies in America.” – Senator Rubio
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“American workers are the true power behind our economy. By investing in employee ownership, we’re investing in our workers and putting more of their hard-earned dollars back in their pockets, instead of sending U.S. profits overseas. This bipartisan bill will offer up-for-sale businesses the tools to transition to employee ownership – empowering workers and keeping jobs and opportunity here at home.” – Senator Van Hollen
U.S. Representatives Dean Phillips (D-MN) and Blake Moore (R-UT) introduced companion legislation in the House of Representatives.
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“My family taught me that business is a means to an end; and that end is ensuring success is shared with the people and communities who help create it. Over the coming years, millions of small business owners will reach retirement age and sell to competitors or other buyers in the mergers and acquisitions market – which often results in jobs leaving the communities that rely on them. Expanding opportunities for employee ownership will help keep businesses and jobs in local communities, allow American workers to build wealth for their families, and result in more sustainable and resilient communities. Employee ownership is both good business and good for business.” – Representative Phillips
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“Utah boasts a flourishing ecosystem of employee-owned businesses that create value for both their customers and employees. We must ensure that our federal programs do not inadvertently hinder opportunities for companies to transition to an employee-ownership model, and the Employee-Ownership Expansion Initiative Act (EEIA) is designed to accomplish this goal without imposing any additional burden on taxpayers.” – Representative Moore
The fact sheet on the bill can be found here.