Valladares’ bill to support worker ownership advances out of Senate Transportation Committee

Sen. Suzette Martinez Valladares, R-Acton, announced that her bill, Senate Bill 1174, to support worker ownership opportunities passed out of the Senate Transportation Committee with unanimous bipartisan support. 

“I’m grateful that my colleagues in the Senate Transportation Committee agree with the importance of expanding opportunities for California workers, not just in wages, but in ownership,” Valladares, whose district includes the Santa Clarita Valley, said in a news release. “Employee ownership gives workers a real stake in success and creates a pathway to financial security that too many Californians are missing.” 

This bill supports ownership models in the construction industry by establishing a bid preference for companies competing on California Department of Transportation projects if they operate an Employee Stock Ownership Plan. 

ESOPs are federally regulated programs that allow employees to earn ownership stakes in the companies where they work, without requiring personal financial investment and helping workers build long-term wealth and financial security. 

The release said research shows that employee-owners experience significantly stronger financial outcomes compared to their peers, including: 92% higher median household wealth; 33% higher median wages; and 52% longer job tenure. 

ESOP companies have also demonstrated greater resilience during economic downturns, retaining jobs at higher rates and maintaining more stable wages, the release said.  

“California should be a place where hard work leads to opportunity and upward mobility,” Valladares added. “By expanding employee ownership, we can strengthen our workforce, support small and mid-sized businesses, and build a more resilient economy.” 

SB 1174 next moves to the Senate Judiciary Committee for further consideration. 

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