On October 1, 2018, twenty-seven (27) Republican members of the House of Representatives (the Representatives) sent a letter to President Trump regarding the Department of Labors (the DOL) current investigatory and enforcement practices with respect to ESOPs.
The Representatives stated they are concerned that the DOLs practice of regulation through litigation is harming small businesses and their employees, that the DOL has released very little guidance on substantive issues including, for example, valuation, and that the DOL has employed counter-productive enforcement tactics, including taking inconsistent positions on legal issues.
In order to address these concerns, the Representatives requested the DOL to (i) develop clear guidance with respect to valuation and other important issues with the assistance of the ESOP community; and (ii) consider immediately halting controversial oversight practices currently in use while the agency develops more efficient investigatory mechanisms that limit the burdens and costs on small businesses.
To access a copy of the Representatives letter, please see House-letter-to-White-House-October-2018.
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