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Bill > S2318


RI S2318

RI S2318
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.


summary

Introduced
01/23/2026
In Committee
01/23/2026
Crossed Over
Passed
Dead

Introduced Session

2026 Regular Session

Bill Summary

This act would clarify 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. This act would also designate that workers furnished by a workers’ cooperative corporation would be considered independent contractors, and the workers’ cooperative with the respect to those workers would be exempt from the requirements that to the extent that a workers’ cooperative has stakeholders (owners) who are employees (members), the workers’ cooperative would be subject to the provisions of title 28 related to employees including, but not limited to: department of labor and training payroll taxes, temporary disability insurance, state unemployment insurance, and workers’ compensation insurance. This act would take effect upon passage.

AI Summary

This bill clarifies that a corporation organized as a workers' cooperative can operate as a hiring hall, essentially acting as an intermediary to provide contract labor to other businesses, provided that the individuals performing the labor are considered independent contractors in their relationship with the business receiving their services. This means that if a worker uses a workers' cooperative to find work with another company but isn't a member of the cooperative or directly providing services to it, certain rules that typically apply to employees of the cooperative will not apply to that worker. The bill also states that workers furnished by such a cooperative will be treated as independent contractors, and the cooperative will be exempt from certain employer obligations, such as paying payroll taxes, temporary disability insurance, state unemployment insurance, and workers' compensation insurance for these workers, even if some owners of the cooperative are also employees. This act will become law immediately upon its approval.

Committee Categories

Labor and Employment

Sponsors (9)

Last Action

Introduced, referred to Senate Labor and Gaming (on 01/23/2026)

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