Washington, D.C. – House Majority Leader Kevin McCarthy (CA-23) released the following statement on House passage of H.R. 1343, the Encouraging Employee Ownership Act:
“For young startups to compete in an economy populated by large corporations, they need good employees and access to capital. Both are difficult to come by when you’re just starting out, which is why small companies commonly offer stock options to their employees. Not only does that give employees ownership over a piece of the company they work for, but selling stock opens up new sources of capital for businesses with a lot of promise.
“Unfortunately, as with so many parts of our government, regulation governing this type of capital formation have not been updated to fit the changing times. This outdated regulation imposes artificial limits on startups attempting to grow and hire the best employees. By updating this regulation, today’s legislation empowers employees and startups alike to succeed without the heavy hand of government holding them back. This legislation builds upon and expands our work on the JOBS Act, seminal legislation to grow our economy and increase private sector investment that passed five years ago come tomorrow.”