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 these cooperatives will be considered independent contractors, and if they are not members of the cooperative or providing services directly to it, certain provisions regarding employee status will not apply to them.

Additionally, the bill designates that workers furnished by a workers' cooperative corporation would be exempt from various employee-related requirements, such as payroll taxes, temporary disability insurance, state unemployment insurance, and workers' compensation insurance, to the extent that the cooperative has stakeholders who are employees. This legislative change aims to clarify the operational framework for workers' cooperatives acting as hiring halls and to delineate the relationship between the cooperative and the individuals it serves. The act will take effect upon passage.