The bill amends Chapter 7-6.2 of the General Laws concerning "Workers' Cooperatives" by adding a new section, 7-6.2-3.1, which allows corporations to elect to be governed as workers' cooperatives specifically for the purpose of providing skilled labor as independent contractors. The new legal language clarifies that these corporations can indicate their intent to operate as such in their articles of incorporation or bylaws. It also specifies that individuals performing labor through the cooperative must do so under conditions that establish their status as independent contractors, rather than employees of the contracting entity.

Additionally, the bill stipulates that if an individual uses a workers' cooperative to secure work with another entity but is not a member of the cooperative or providing services directly to it, they will not be subject to certain provisions outlined in § 7-6.2-4(f). This act aims to clarify the operational framework for workers' cooperatives and exempt them from certain employee-related requirements, such as payroll taxes and workers' compensation insurance, when dealing with independent contractors. The act will take effect upon passage.