The ESOP Association (TEA) announced its strong support for Keith Sonderling’s nomination to serve as U.S. Secretary of Labor, and the Senate HELP Committee advanced his nomination on July 30 following his confirmation hearing on July 16. TEA is now urging Senators on both sides of the aisle to quickly confirm Sonderling so he can continue his important work at the Department of Labor (DOL).
During his service as Deputy Secretary and Acting Secretary of Labor, Sonderling has demonstrated an understanding of the challenges facing ESOP companies, plan fiduciaries, and employee owners.
Under Sonderling’s leadership, the Department of Labor has begun moving toward a more balanced and predictable approach to ESOP oversight. In January, the Employee Benefits Security Administration (EBSA) removed ESOPs as a stand-alone national enforcement priority and refocused its efforts on serious misconduct instead of minor procedural violations. This change was an important step toward protecting employee owners without discouraging responsible companies from establishing or maintaining ESOPs.
Sonderling has also emphasized the need for clear federal regulation, which would include clarity on the guidance governing ESOP transactions. For decades, ESOP fiduciaries have been forced to operate without a workable regulation defining “adequate consideration,” relying instead on court decisions, settlement agreements and shifting agency interpretations. That uncertainty has increased costs, fueled litigation and created an unnecessary obstacle to expanding employee ownership.
His commitment to ending regulation through litigation and addressing meritless ERISA lawsuits is similarly important. Employers should be able to offer valuable retirement benefits without facing excessive litigation simply because federal rules remain unclear.
The HELP Committee voted on his confirmation on July 30, which advanced his nomination by a vote of 12-11, and is followed by the full Senate’s final confirmation vote. The ESOP Association is urging the full Senate to confirm him without delay.
With clear regulations, appropriately focused enforcement, and strong protections for plan participants, the Department can safeguard existing employee owners while helping millions more Americans gain an ownership stake in the companies where they work.
“EBSA’s enforcement powers are broad and impact American workers, retirees, and their families through many stages of life. Because of that, it’s vitally important that our investigators focus on areas that we feel will produce the best results,” said Deputy Secretary of Labor Keith Sonderling. “By recalibrating the areas our investigators focus on, EBSA investigations will be more efficient, responsive, and prioritize serious misconduct rather than minor foot faults.”
https://www.dol.gov/newsroom/releases/ebsa/ebsa20260115
“Through his leadership and his actions, Acting Secretary Keith Sonderling has earned the trust of ESOP companies, plan fiduciaries, and the millions of employee owners whose retirement security depends on a fair and effective Department of Labor,” said James Bonham, President and CEO of The ESOP Association. “He has demonstrated a commitment to balanced enforcement, regulatory clarity, and policies that will strengthen retirement security and grow broad-based employee ownership in America. Keith Sonderling is exceptionally qualified to serve as Secretary of Labor, and we urge the Senate to confirm him without delay.”
The ESOP Association’s press release in support of Keith Sonderling ESOP Companies, Professional Service Providers Strongly Support Keith Sonderling for U.S. Secretary of Labor | The ESOP Association
The ESOP Association’s statement to the Senate HELP Committee in support of Keith Sonderling to be Secretary of Labor Sonderling statement HELP confirmation 7-26.pdf
To see Keith Sonderling’s confirmation hearing, click here Nomination of Keith Sonderling to be Sec... | Senate Committee on Health, Education, Labor and Pensions
