I am writing to express my strong support for Senate Bill 1174, which creates a contracting preference for construction companies that operate an employee stock ownership plan (ESOP). I believe that fostering employee ownership is crucial for building a stronger and more sustainable local economy.
Employee ownership offers significant benefits for businesses, employees, and the broader community. Employees at ESOP companies have 92% higher median household wealth, earn 33% higher wages, and stay with their employers 52% longer than similar workers at traditional firms. These companies have also demonstrated greater stability during economic downturns, including the COVID-19 pandemic, when they were far more likely to preserve jobs, pay, and benefits.
I believe the state should invest taxpayer dollars in companies that give employee owners across the state access to wealth-building opportunities that have historically been limited to company executives.
Please record my personal support for SB 1174. I invite you to share my position with any and all relevant legislators and appropriate legislative committees.
California should absolutely do more to promote employee ownership growth in California. Thank you for your time and consideration.