The bill amends Chapter 7-6.2 of the General Laws regarding "Workers' Cooperatives" by adding a new section that allows corporations electing to be governed as workers' cooperatives to operate specifically for the purpose of furnishing 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 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.

Furthermore, the bill states 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, the provisions of 7-6.2-4(f) shall not apply to that individual. This legislation aims to clarify the operational framework for workers' cooperatives acting as hiring halls and exempts them from certain employee-related requirements, such as payroll taxes, temporary disability insurance, state unemployment insurance, and workers' compensation insurance, for those individuals classified as independent contractors. The act will take effect upon passage.