Labor Secretary Chavez-DeRemer Pledges to Promote Employee Ownership, Undo "Culture of Harassment" in ESOPs
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Labor Secretary Chavez-DeRemer Pledges to Promote Employee Ownership, Undo "Culture of Harassment" in ESOPs
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During her address, Chavez-DeRemer expressed strong support for employee stock ownership plans (ESOPs), stating that "the Trump administration recognizes the real transformative power of employee stock ownership plans." She specifically referenced Bob's Red Mill, a large ESOP from her former congressional district in Oregon, acknowledging company representatives who were in attendance.
The Secretary pledged to "undo the culture of harassment" that she believes has hindered ESOP growth. This statement refers to her administration's recent withdrawal of a regulation proposed during the final days of the Biden administration that would have defined "adequate consideration" for appraising shares in ESOPs. The proposal had faced opposition from The ESOP Association.
Chavez-DeRemer emphasized her commitment to promoting rather than discouraging employee ownership, highlighting the Employee Equity Investment Act from the previous Congress that aimed to facilitate business transitions to employee ownership. She affirmed, "I understand how poor regulation and misguided agency agendas can directly impact business success. It is my mission to support you, not regulate you into oblivion."
More recently, on May 29, reports emerged about new Department of Labor policies regarding staff communication with journalists. Under Chavez-DeRemer's leadership, department employees have been warned that speaking with journalists could potentially lead to legal consequences. This policy shift underscores how the Trump administration is making inroads with labor unions that have historically supported Democrats.
Since assuming office in March following her Senate confirmation with a vote of 67-32, Chavez-DeRemer has been implementing the Trump administration's labor agenda. Her confirmation received notable bipartisan support, with 17 Democrats voting in favor while three Republicans opposed her nomination.
Before becoming Labor Secretary, Chavez-DeRemer represented Oregon's 5th Congressional District. During her time in Congress, she received recognition from the National Federation of Independent Business with their Guardian of Small Business award for her voting record on key issues. NFIB President Brad Close praised her confirmation, noting that "Small business owners are ready for a new direction following the November elections."
As the 30th Secretary of Labor, Chavez-DeRemer is expected to focus on establishing guidance for independent contractor classification rules and exploring strategies to modernize federal labor laws to support business growth and workforce development in the coming months.