Keith Sonderling, Strongly Supported by The ESOP Association, Confirmed by Senate as U.S. Secretary of Labor

WASHINGTON--(BUSINESS WIRE)--The U.S. Senate last night voted to confirm Keith Sonderling as Secretary of Labor by a vote of 47-41. The ESOP Association has been a strong supporter of Sonderling’s regulatory approach and specific actions he has taken since becoming Deputy Secretary in 2025 and Acting Secretary in April 2026.

“Keith Sonderling will be an exceptional Labor Secretary that ESOP companies, employee owners, and professional service providers can be proud of,” said Derrick Vick, President of Freedom Industries Inc. and Chair of The ESOP Association’s Board of Directors. “He understands the balance between enforcement to protect workers and their retirement savings, and allowing employee ownership in America to thrive through new ESOP formation driven by regulatory transparency and fairness. The ESOP Association and our members look forward to working with Secretary Sonderling to help create a new era of ESOP growth, where jobs and wealth remain in our local communities.”

Now that Congress has passed the Retire Through Ownership Act, The ESOP Association is hopeful the DOL will soon undertake formal notice and comment rulemaking that provides the finer details defining adequate consideration, while shifting its enforcement posture to reflect the new approach codified in the legislation.

Since becoming Deputy Secretary of Labor, Sonderling has advanced a regulatory and enforcement approach that has been welcomed by ESOP companies, plan fiduciaries, and employee owners. Working with Assistant Secretary Daniel Aronowitz and the Employee Benefits Security Administration (EBSA), he has driven a shift at the Department toward a more balanced and predictable approach to ESOP oversight.

In January, Sonderling announced that EBSA was changing its enforcement priorities, which included removing ESOPs “to ensure an even-handed, responsive approach to investigations to produce the best results for American workers, retirees, and their families.” He said that the new enforcement priorities will make investigations “more efficient, responsive, and prioritize serious misconduct rather than minor foot faults.”

The ESOP Association also supports Sonderling's emphasis on providing clear regulatory guidance, particularly regarding the "adequate consideration" standard for ESOP transactions. For too long, plan fiduciaries have been forced to navigate an inconsistent patchwork of court decisions, settlements, withdrawn regulations, and informal agency interpretations rather than clear federal rules. That uncertainty has increased litigation, discouraged ESOP formation, and limited opportunities for more American workers to become employee owners.

Sonderling has also called for ending "regulation by litigation" and reducing meritless ERISA lawsuits that drive up costs for plan sponsors. This approach, combined with balanced enforcement and clear regulatory guidance, will create a stronger environment for new ESOP formation and the growth of employee ownership.

For more information, see The ESOP Association’s full statement of support for Keith Sonderling’s nomination.