News & Analysis as of

Department of Labor (DOL) Employee Stock Ownership Plans

Kaufman & Canoles

ESOPs Benefits & Compensation - Q1 2025 Client Alert

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Happy Spring from the Kaufman & Canoles ESOPs, Benefits & Compensation team! We hope you’re shaking off the winter blues and ready for another round of benefits updates. ...more

Morgan Lewis - ML Benefits

Long Awaited ESOP Proposals Issued and Then Quickly Withdrawn

On January 20, 2025, an executive order froze two new pieces of proposed employee stock ownership plan (ESOP) guidance announced in a notice of proposed rulemaking and originally set for publication in the Federal Register on...more

Lathrop GPM

The “Deregulatory Initiative” Executive Order: Impact on Employee Benefit Plans

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A February 19 Executive Order, titled “Ensuring Lawful Governance and Implementing the President’s ‘Department of Government Efficiency’ Deregulatory Initiative,” is aimed at directing the “Administration to focus the...more

Holland & Knight LLP

The Rise and Fall of the DOL's Long-Anticipated Proposed Regulation on "Adequate Consideration"

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The U.S. Department of Labor (DOL) on Jan. 16, 2025, released its long-awaited proposed regulation interpreting the definition of "adequate consideration" as applied to private company stock acquired or sold by an employee...more

McDermott Will & Emery

Trump Places DOL’s ESOP Proposals in Regulatory Moratorium

On January 16, 2025, the US Department of Labor’s (DOL) Employee Benefits Security Administration (EBSA) released two pieces of guidance that, if finalized, would dramatically change the landscape for fiduciaries responsible...more

Kaufman & Canoles

ESOPs, Benefits & Compensation Client Alert - January 2025

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On January 16, the Department of Labor released long-awaited guidance on how to determine the value of employer stock in purchase and sale transactions involving an ESOP. Unfortunately for those in the ESOP community hoping...more

Polsinelli

Department of Labor Proposes Rule on Valuing Stock for ESOP Stock Purchase and Sale Transactions

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On January 16, 2025, the Employee Benefits Security Administration (EBSA) at the Department of Labor (DOL) released drafts of long-awaited proposed regulations seeking to clarify the definition of “adequate consideration” as...more

Bricker Graydon LLP

Navigating ESOP Transactions: Essential Steps to Minimize DOL Scrutiny from the Start

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In a recent court ruling, the US Department of Labor (DOL) prevailed against corporate directors and shareholders for claims related to an Employee Stock Ownership Plan (ESOP) transaction. ...more

Kaufman & Canoles

ESOPs, Benefits & Compensation Q2 2024 Client Update

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On behalf of the ESOPs, Benefits & Compensation team, we hope your Summer is off to a great start. In the time of family vacations and out-of-office replies, the pace of employee benefits changes—both large and small—remains...more

Foley & Lardner LLP

Five Things on the Department of Labor’s Radar for Employee Benefit Plans

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All qualified retirement plans are subject to a myriad of requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA). The United States Department of Labor (DOL) is charged with enforcing the...more

Holland & Hart - The Benefits Dial

Sweet Child O’Mine – Business Transition with Benefits

Owners of closely held businesses, particularly first-generation owners, often have a difficult time finding a suitable succession plan. These owners are faced not only with phasing out of their labor of love, but choosing a...more

Kaufman & Canoles

ESOP Community Waits for DOL Regulation on Valuation with Hope and Dread

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As part of the comprehensive “SECURE 2.0” retirement plan legislation enacted in December 2022, Congress directed the U.S. Department of Labor (DOL) to issue a long delayed and much needed regulation defining the term...more

Kaufman & Canoles

ESOPs & Employee Benefits Q1 2024 Client Update

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On behalf of the ESOPs & Employee Benefits team, we hope you’re enjoying the first days of Spring, when the longer days allow more time to ponder the ever-changing landscape of employee benefits compliance. Please find below...more

Freeman Law

Employee Stock Ownership Plans | A Brief Overview

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Since their establishment in 1974, Employee Stock Ownership Plans (“ESOPs”) have become a popular and effective mechanism for private companies (both C corporations and S corporations) to provide employees an opportunity to...more

ArentFox Schiff

Fiduciary Obligations in a Re-Leveraging Transaction Heads to Court: Shipp v. Central States Manufacturing, Inc., Case...

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On November 28, three participants in Central States Manufacturing, Inc.’s employee stock ownership plan (ESOP) filed a complaint on their own behalf and on behalf of other ESOP participants against the company, its board of...more

Kaufman & Canoles

ESOPs & Employee Benefits Q3 2023 Client Update

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As summer turns to fall, the employee benefits landscape continues to evolve. A few of our thoughts on recent updates are below. Also be on the lookout over the coming weeks for a separate guide to SECURE 2.0 provisions that...more

Morgan Lewis - ML Benefits

IRS Warns of Compliance Actions Related to ESOPs and High-Income Taxpayers

The Internal Revenue Service (IRS) recently issued IR-2023-144 (the Notice), warning stakeholders of compliance issues associated with employee stock ownership plans (ESOPs) related to the tax liability of high-income...more

Groom Law Group, Chartered

IRS Warns Plan Sponsors of ESOP Compliance Risks

On August 9, 2023, the Internal Revenue Service (“IRS”) issued a new notice (IR-2023-144, the “Notice”) cautioning employers “to be alert to a range of compliance issues that can be associated with Employee Stock Ownership...more

Kilpatrick

IRS Cautions Plan Sponsors of ESOPs

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As part of SECURE 2.0, Congress directed the Department of Labor to develop an employee ownership initiative to encourage and incentivize employee ownership in the companies they work for. Last month, the Department of Labor...more

Goodwin

A Step Towards Guidance Instead of Regulation by Litigation in the ESOP Space

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Employee Stock Ownership Plans (ESOPs), their sponsors and participants, and other industry players will welcome the news announced by the ESOP Association on April 14, 2023, that the Department of Labor (DOL) has committed...more

Kaufman & Canoles

ESOPs & Employee Benefits Q1 2023 Client Update

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Welcome to Spring! We hope the new season finds you ready for the upcoming benefits changes that 2023 has in store. ...more

Levenfeld Pearlstein, LLC

How the Secure Act 2.0 Affects ESOPs, 401(k)s, and Other Retirement Plans

The Secure Act 2.0 of 2022, enacted in the closing days of 2022, makes a substantial number of changes to tax-qualified retirement plans, most of which are intended to increase plan coverage and retirement savings. Although...more

Morgan Lewis - ML Benefits

SECURE Act 2.0: Impact on ESOPs

The SECURE 2.0 Act of 2022 (SECURE Act 2.0) makes far-reaching changes to the US retirement plan system. Our initial SECURE Act 2.0 LawFlash provided a general overview of its significant provisions. This blog post—one in our...more

PilieroMazza PLLC

Weekly Update for Government Contractors and Commercial Businesses – November 2022 #3

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GOVERNMENT CONTRACTS - SBA Adjusts Economic Disadvantage Thresholds for 8(a) and EDWOSB Programs and Monetary-Based Size Standards - Per an interim final rule published on November 17, 2022, the Small Business...more

Kaufman & Canoles

ESOPs & Employee Benefits Q3 2022 Client Update

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Happy Fall from the K&C ESOPs & Employee Benefits practice group. We’ve compiled a short list of employee benefits updates from the third quarter of 2022....more

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