Bill > S0067

This bill clarifies the legal framework for workers' cooperatives in Rhode Island by allowing such corporations to operate as a hiring hall under specific conditions. The legislation permits a workers' cooperative to furnish contract labor to other entities, with the crucial stipulation that workers are considered independent contractors and not employees of the cooperative. Specifically, the bill states that if an individual uses the cooperative to secure work but is not a member of the cooperative or not directly providing services to it, certain legal provisions related to worker classification will not apply to that individual. This means that for workers who are not members of the cooperative, the usual employment-related requirements such as payroll taxes, temporary disability insurance, state unemployment insurance, and workers' compensation insurance would not be mandatory. The bill aims to provide more flexibility for workers' cooperatives in how they can structure their labor arrangements while maintaining clear distinctions between members and non-member workers. The legislation will take effect immediately upon its passage by the Rhode Island General Assembly.

Labor and Employment

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