A New Chapter at EBSA: Dan Aronowitz Cleared by Senate to Take the Helm | Holland & Knight LLP
The U.S. Senate has confirmed Daniel Aronowitz as assistant secretary of labor, placing him in charge of the Employee Benefits Security Administration (EBSA), the arm of the U.S. Department of Labor (DOL) responsible for enforcing the Employee Retirement Income Security Act of 1974 (ERISA). Aronowitz’s confirmation foreshadows a significant shift in the DOL’s approach to fiduciary oversight, employee stock ownership plan (ESOP) regulation and retirement plan governance.
Aronowitz, a seasoned fiduciary liability expert and former president of fiduciary liability insurance underwriter Encore Fiduciary, brings more than 30 years of experience in ERISA-related insurance and compliance. In his June 5, 2025, confirmation hearing, Aronowitz laid out a bold vision for reforming EBSA’s enforcement strategy and regulatory posture. In particular, he outlined three core goals for ESBA:
Improve Enforcement of Fiduciary Law. Aronowitz pledged to end what he called “open-ended investigations that go on for years” and eliminate EBSA’s “bias against ESOPs and other legitimate ways to expand retirement benefits and ownership to America’s workers.” He also criticized the DOL’s use of common-interest agreements with plaintiff lawyers, stating: “We will end the regulatory abuse of common-interest agreements with plaintiff lawyers. EBSA’s enforcement will be fair, even-handed, and efficient.”
Aronowitz has pledged to end the DOL’s skepticism of ESOPs, calling them a vital tool for employee ownership and retirement security. In response to a question from Sen. Lisa Murkowski (R-Alaska), he stated: “I believe that Congress wants ESOPs, and everybody’s for ESOPs except the Department of Labor the last 20 years, and I will end the war on ESOPs. I think it’s the best way for employees to get an additional benefit, and ownership in an American company.”
He also discussed the DOL’s litigation targeting the work performed by ESOP valuation firms: “That can’t be right that every single one of them are doing it wrong. What the Department is doing is nitpicking the professional judgment of the valuation professionals. I’m going to put an end to that … .”
Provide Regulatory Clarity. Aronowitz emphasized the need for clear, stable rules to encourage plan sponsors to expand benefits: “We will end the era of regulation by litigation by providing clear and effective rules for America’s employee benefit system.” He added: “We will restore discretion to plan fiduciaries as Congress intended in the ERISA statute, so that fiduciaries, not the government or plaintiff lawyers, decide what is best for plan participants.”
Key areas he identified for regulatory modernization include:
- alternative investments (e.g., private equity, cryptocurrency)
- environmental, social and governance (ESG) considerations
- individual retirement account (IRA) rollover fiduciary rules
- mental health parity
- cybersecurity protections
Champion Benefit Expansion. Aronowitz committed to expanding access to retirement and health benefits, especially for independent contractors and underserved workers: “I will champion expanding retirement and health plan access to America’s independent contractor workforce, which includes association health plans. I will also champion the cause of better mental health benefits to America’s workers.”
Looking Ahead
Aronowitz’s confirmation comes at a time when EBSA faces a packed regulatory agenda, including:
- a revised fiduciary rule expected by May 2026
- implementation of SECURE 2.0 Act provisions
- guidance on alternative investments in retirement plans
- expanded access to alternative investments
- proposed updates to ESOP valuation standards
- development of the DOL’s lost and found database for retirement accounts
Aronowitz’s appointment signals a potential turnaround in EBSA’s regulatory posture, with implications for ongoing litigation, compliance strategies and fiduciary risk management. His leadership is expected to bring a more pragmatic and business-friendly approach to EBSA’s enforcement and rulemaking priorities.
