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Bill would clarify worker‑cooperative status and permit certain co‑ops to serve as hiring halls; sponsor frames as fix to misclassification disputes
Summary
H 5682 would allow worker cooperatives to specify in their bylaws that they furnish skilled labor through members and to avoid certain misclassification disputes; sponsor said it would help co‑ops operate in project‑based industries while keeping member control.
The committee heard introductory testimony on H 5682, a bill to clarify the legal role of worker cooperatives that supply skilled labor and to permit such cooperatives under certain conditions to operate as hiring halls that connect members to project‑based work.
A designee presented the measure on behalf of Representative Vosse and said the bill is intended to resolve worker‑classification issues that can arise when workers who are member‑owners perform labor through a cooperative. The proposal would allow a cooperative to state in its articles or bylaws that it exists to furnish skilled labor through its members and would provide a statutory basis for classifying member work as independent contractor activity under specific conditions, while preserving member control.
Supporters said the change would benefit industries with project‑based work — construction, trades and creative industries — by giving worker cooperatives a clear legal pathway to match members with jobs without risking misclassification litigation that could arise when members are considered employees of a hiring intermediary. The sponsor’s designee said the bill is the result of prior consultation with the Department of Labor and Training and industry stakeholders.
No votes were taken; committee members requested clarifying language and examples of eligible industries and safeguards to protect workers’ rights.
