Employee Ownership and Participation Act

Employee Ownership and Participation Act - Directs the Secretary of Labor (the Secretary) to establish an Employee Ownership and Participation Program (the Program) to help set up programs within the States to foster increased employee ownership and participation in company decisionmaking. Requires the Program to provide for grants to such programs which meet specified criteria.

Directs the Secretary to establish within the Department of Labor the Office of Employee Ownership and Participation (the Office) to promote employee ownership, gainsharing, and participation in company decisionmaking. Requires the Office to: (1) support programs which are in compliance with the Program; (2) help the formation of new programs; and (3) conduct or fund research into employee ownership and participation in company decisionmaking and gainsharing.

Authorizes the Office to make double-matching grants under the Program for specified activities in connection with programs within the States. Allows each State to sponsor and submit grant applications on behalf of local governments, State-supported institutions of higher education, and nonprofit organization programs. Permits such entities to apply directly in the absence of a State-established program. Requires each State (or recipient in the absence of a State program) to report annually on use of grant funds. Set forth limitations on aggregate grants to each State for FY 1991 through 1995.

Authorizes appropriations.

Requires the Office to report to the Congress on the progress of employee ownership and participation in U.S. businesses, including critical cost and benefit analysis of program activities.