AN ACT RELATING TO CORPORATIONS, ASSOCIATIONS, AND PARTNERSHIPS -- WORKERS' COOPERATIVES (Clarifies the role of a corporation electing to be governed as a workers' cooperative to allow it to operate as a hiring hall under certain circumstances.)

S2318

2026 -- S 2318
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LC003804
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO CORPORATIONS, ASSOCIATIONS, AND PARTNERSHIPS -- WORKERS'
COOPERATIVES

Introduced By:
Senators Acosta, Vargas, Ciccone, Burke, Quezada, Thompson, Pearson,
Mack, and Kallman

Date Introduced:
January 23, 2026

Referred To:
Senate Labor & Gaming
It is enacted by the General Assembly as follows:
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SECTION 1. Chapter 7-6.2 of the General Laws entitled "Workers' Cooperatives" is hereby
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amended by adding thereto the following section:
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7-6.2-3.1. Corporations organized for the purpose of furnishing skilled labor.

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A corporation electing to be governed as a workers' cooperative, may in its articles of
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incorporation or bylaws, indicate its intent to be so governed for the purpose of furnishing contract
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labor for other entities; provided that, any individual performing said labor does so under
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circumstances that demonstrate that the individual's relationship to the contracting entity is one of
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an independent contractor furnishing skilled labor through the workers' cooperative corporation.
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For the purpose of § 7-6.2-4(f), if an individual makes use of such a worker's cooperative to secure
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work with another entity, but is not a member of the cooperative or is not furnishing services
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directly to the cooperative, the terms of that subsection shall not apply to that individual.
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SECTION 2. This act shall take effect upon passage.
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LC003804
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO CORPORATIONS, ASSOCIATIONS, AND PARTNERSHIPS -- WORKERS'
COOPERATIVES
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This act would clarify the role of a corporation electing to be governed as a workers'
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cooperative to allow it to operate as a hiring hall under certain circumstances.
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This act would also designate that workers furnished by a workers’ cooperative corporation
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would be considered independent contractors, and the workers’ cooperative with the respect to
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those workers would be exempt from the requirements that to the extent that a workers’ cooperative
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has stakeholders (owners) who are employees (members), the workers’ cooperative would be
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subject to the provisions of title 28 related to employees including, but not limited to: department
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of labor and training payroll taxes, temporary disability insurance, state unemployment insurance,
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and workers’ compensation insurance.
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This act would take effect upon passage.
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