S. 2474 — Advocate for Employee Ownership Act

This section establishes an Advocate for Employee Ownership within the Department of Labor's Employee Ownership Initiative, as created under the SECURE 2.0 Act of 2022. The Advocate, appointed by the Secretary of Labor without regard to competitive service or Senior Executive Service requirements and compensated at the rate for Executive Schedule level V, must (1) consult with the Initiative head; (2) act as liaison among the Department of Labor, employee ownership advocates, employers, workers, ESOP sponsors and participants, and other stakeholders; (3) provide public education and assistance to promote employee ownership including through employee stock ownership plans (ESOPs, i.e., qualified retirement plans under ERISA and the Internal Revenue Code that invest primarily in employer securities); (4) assist in resolving disputes between the Department of Labor and ESOP sponsors, fiduciaries, or participants; (5) recommend legislative and administrative changes to promote employee ownership including ESOPs; and (6) coordinate outreach and education with other federal agencies (e.g., Small Business Administration, Treasury, Commerce), states, and localities on employee ownership as a business succession option. The section further requires the Secretary to consult the Advocate on ESOP-related regulations or interpretations; directs annual reports to the Senate HELP Committee and House Education and Workforce Committee (with concurrent submission to the Secretary and public availability) summarizing assistance requests, activities and effectiveness, identified problems and mitigation, recommendations to promote employee ownership, and U.S. progress on employee ownership; and authorizes appropriations for the Advocate's compensation. (b) This section makes a conforming amendment to the ERISA table of contents.