Contributing Author: Kristine Custodio Suero, Advanced Certified Paralegal

 

Each October, Employee Ownership Month provides an opportunity to recognize the businesses, employees and advisors who are helping advance employee ownership across the United States.

 

The ESOP Association describes Employee Ownership Month as a month-long celebration of the benefits employee ownership can provide to employees, companies, communities and the nation. It is also an opportunity to educate business leaders and the public about what employee ownership can mean in practice.

 

At Schechter Benefits Law Group LLP, employee ownership has been an important part of our practice for decades. We represent ESOP clients across the United States in matters involving ESOP transactions and the complex employee-benefits and ERISA issues that accompany them. Our attorneys have also been actively involved with organizations supporting the employee-ownership community, including The ESOP Association, the National Center for Employee Ownership and the Beyster Institute for Entrepreneurial Employee Ownership.

 

As we recognize Employee Ownership Month, it is worth considering not only what employee ownership is, but why the conversation surrounding it continues to matter.

 

Employee Ownership Is More Than a Transaction

 

For business owners considering succession, the question of what happens to the company they have spent years building can be deeply consequential.

 

Some businesses may be sold to a third party. Others may transition to family members or existing management. For certain companies, an Employee Stock Ownership Plan, or ESOP, may provide another path.

 

An ESOP is a qualified retirement plan governed by a detailed framework of federal tax and employee-benefits laws, including the Employee Retirement Income Security Act of 1974, commonly known as ERISA. But an ESOP can also be part of a much larger business conversation involving ownership transition, retirement security, corporate culture and the future of an organization.

 

That is one reason employee ownership continues to attract attention among business owners, policymakers and professional advisors.

 

As we discussed earlier this year in our blog post, Why More Companies Are Exploring Employee Ownership, succession planning, employee retention, retirement security and the desire to preserve an organization's culture and independence are among the considerations bringing employee ownership into more business-transition conversations.

 

Employee ownership is not appropriate for every business. Determining whether an ESOP makes sense requires careful analysis of the company's circumstances, financial position, objectives and long-term strategy.

 

The Legal Framework Matters

 

The potential benefits of an ESOP are accompanied by significant legal and fiduciary responsibilities.

 

ESOPs operate at the intersection of ERISA, tax law, corporate law, fiduciary obligations, plan administration and business transactions. Establishing an ESOP therefore is not simply a matter of transferring company stock to employees.

 

Plan design, transaction structure, valuation, financing, fiduciary decision-making, disclosure obligations, administration and ongoing compliance can all become important parts of the process.

 

And those responsibilities do not end when an ESOP transaction closes.

 

An ESOP is an ongoing qualified retirement plan. Fiduciaries and plan sponsors must continue navigating ERISA's requirements and the plan's operational obligations as the company and its workforce evolve.

 

Experienced legal, financial, valuation, trustee and administrative professionals can therefore play important roles throughout the life cycle of an ESOP.

 

Decades of Experience in the ESOP Community

 

For Partner Marc S. Schechter, employee ownership has been a significant part of his employee-benefits practice throughout his career.

 

Marc specializes in employee benefits, ERISA and business matters and has extensive experience designing, drafting and implementing qualified and nonqualified employee-benefit programs, with a particular emphasis on ESOP transactions. He has written and lectured extensively on employee-benefits topics.

 

That experience reflects the broader approach of Schechter Benefits Law Group LLP.

 

Our firm represents ESOP clients across the country in matters involving employee ownership and employee benefits. We understand that these matters require more than technical knowledge of ERISA. They require an understanding of the businesses, people and long-term objectives behind the plan.

 

That perspective is particularly important because every employee-owned company has its own story. There is no single ESOP structure appropriate for every organization, and there is no substitute for carefully considering the circumstances of the company and its participants.

 

Employee Ownership and the Future of Business

 

Employee Ownership Month also provides an opportunity to look ahead.

 

The conversation surrounding employee ownership increasingly intersects with broader questions about business succession, workforce development, technological change and the future of work.

 

Those conversations are especially relevant as business owners consider how their companies will transition to the next generation of leadership and as organizations consider how employees participate in the economic value they help create.

 

Earlier this year, we examined this intersection in the context of California's discussion of artificial intelligence, workforce resilience and employee ownership. These developments illustrate how employee ownership is increasingly being discussed not simply as an employee-benefits issue, but as part of larger conversations about the structure and future of businesses and work.

 

The ESOP Association's 2026 Employee Ownership Month programming reflects that continuing engagement, including a virtual educational series throughout October designed to help organizations prepare, engage and celebrate employee ownership.

 

Celebrating Employee Owners

 

Employee Ownership Month ultimately centers on people.

 

Behind every ESOP are employees building careers, companies planning for their futures, business owners considering succession and professionals working to help employee-owned organizations operate responsibly and successfully.

 

For Schechter Benefits Law Group LLP, October is an opportunity to recognize that community and reaffirm our commitment to the employee-ownership field.

 

We are proud of our firm's long history serving ESOP companies, plan sponsors, fiduciaries and other members of the employee-ownership community, and we look forward to continuing to help organizations navigate the evolving legal landscape surrounding employee ownership.

 

Happy Employee Ownership Month from Schechter Benefits Law Group LLP.

 

About Schechter Benefits Law Group LLP

 

Schechter Benefits Law Group LLP focuses on ERISA and employee benefits law, including ESOPs, employee ownership transactions, fiduciary counseling, retirement plan compliance, benefits litigation and qualified domestic relations orders (QDROs). The firm advises plan sponsors, fiduciaries, trustees, and organizations navigating complex employee benefits and governance issues.

 

*Nothing stated herein is to be construed as legal or tax advice and shall not form any attorney-client relationship. Each individual situation is unique. Please contact us and speak with one of our attorneys regarding your individual situation.