White House Reviewing DOL’s Worker-Owned Company Valuation Rule

The US Labor Department is putting the finishing touches on a regulation more than 36 years in the making that will set standards for appraising the value of companies being sold to their workers.

DOL’s Employee Benefits Security Administration last week sent the rule to the White House Office of Information and Regulatory Affairs, the final step before it can be formally proposed.

Employee stock ownership plans have been desperate for clear guidance on what the term “adequate consideration” means as it applies to a prohibited transaction exemption under the Employee Retirement Income Security Act allowing closely held companies to ...