DOL ESOP Proposed Rule Has Left OMB

The Office of Management and Budget has completed review of a proposed rule from the Department of Labor (DOL) titled "Worker Ownership, Readiness, and Knowledge”, pursuant to the requirements of Section 346 of SECURE 2.0.

According to a summary of the rule, Section 346 of the SECURE 2.0 Act of 2022 directs the Secretary of Labor to establish within the Department of Labor an Employee Ownership Initiative to promote employee ownership. Section 346(c)(4)(B), in turn, provides that the Secretary of Labor, in consultation with the Secretary of the Treasury, shall issue formal guidance for acceptable standards and procedures to establish good faith fair market value for shares of a business to be acquired by an employee stock ownership plan (as defined in section 407(d)(6) of ERISA).