Senator Kirsten Gillibrand of New York wants to make sure small businesses can stay open when their owner retires. She announced new legislation to make it easier for owners to transfer their business to their workers.
The Main Street Employee Ownership Act would make it easier for businesses to transition to employee stock ownership plans or cooperatives.
Gillibrand says these programs helps to ensure that workers keep their jobs even if a business owner retires.
“There are thousands of businesses in New York that are owned, run by baby boomers who are getting ready to retire in the next few years,” Gillibrand said.
The bill promotes ESOPs and co-ops across the country and Gillibrand says these programs reward workers.
She says workers in employee-owned companies are typically paid more, have more retirement savings, and have greater job stability.
Gillibrand hopes to pass the legislation before the August break.