1. Short title This Act may be cited as the Emergency Economic and Workforce System Resiliency Act . 2. Definitions (a) In general Except as otherwise provided, the terms used in this Act have the meanings given the terms in section 3 of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3102 ). (b) Employee ownership trust The term employee ownership trust is an indirect form of employee ownership in which a trust holds a controlling stake in a company on behalf of all its employees and provides an incentive for owners to sell a controlling stake in their business. (c) Employee stock ownership plan The term employee stock ownership plan has the meaning given the term in section 4975(e)(7) of the Internal Revenue Code of 1986. (d) Worker cooperative The term worker cooperative means a values-driven business that puts worker and community benefit at the core of its purpose, and in which— (1) workers own the business and they participate in its financial success on the basis of their labor contribution to the cooperative; and (2) workers have representation on and vote for the board of directors, adhering to the principle of one worker, one vote. I Supplemental Formula Grants for Emergency Layoff Aversion and Workforce Training Activities 101. Formula grants (a) In general Not later than 1 year after the date of the enactment of this Act, the Secretary of Labor shall award 5-year grants in accordance with subsection (b), to States to support efforts to— (1) reduce and prevent unemployment; and (2) limit the impact of disruptions (economic, pandemic-related, transitions of retiring business owners, automation-related, trade-related, or other forces) on labor markets. (b) State allotments (1) In general From the amount appropriated under section 105, the Secretary shall— (A) reserve not more than 1/4 of 1 percent of such amount to provide assistance to the outlying areas; and (B) make allotments to the States under paragraph (2) to— (i) make allocations under subsection (c)