Co-op Law
Resources for Worker Cooperatives
Co-op Law
Resources for Worker Cooperatives

Worker-owned Co-ops

Worker-owned cooperatives deliver goods or services to the public as one member-owned entity. There are many different forms of worker-owned coops, which are generally based on the services or goods the worker-owners offer. Some industries, like the ones below, are especially suited to worker cooperatives. 

Green co-ops

Green co-ops are coops that prioritize environmental sustainability. This could be green home cleaning, retrofitting,  landscaping and more. Worker cooperatives are uniquely suited to being green, and therefore are positioned to benefit greatly from the green movement. Whereas conventional businesses may be more concerned with profit margins than the health of workers and/or the environment, co-ops can prioritize worker needs and values. 

Some of these clean and green work opportunities may require a contractor’s license. 

All house-cleaning work, and any contracting job that make less than $500, does not require a contractor’s license. Any contracting work for more than $500 (including labor and supplies) requires a license. California offers a general contractors license and in addition to a general contractor’s license, California offers 41 specialty licenses. Which licenses a co-op needs is determined by the type of work worker-owners will be doing.

Youth-owned co-ops

In the U.S. today, youth face the challenges of high tuition fees and a difficult job market, leading to high rates of unemployment among young people. This early unemployment has long-lasting effects, as it results in lower wages and limited skill development in the long run. Additionally, youth unemployment is seen as a global crisis, with many young individuals resorting to unpaid internships. However, forming youth cooperatives can help address these issues by combating poverty, retaining local talent, and fostering leadership skills and community engagement, although legal and general youth-related issues may arise. Intergenerational dynamics should be considered.  This includes deciding whether surplus dividends should be distributed to youth or held in trust until they reach age 18.

Legal considerations include: limitations to entering legal contracts, financial limitations like opening a bank account, minors may be exempt from paying income and self-employment tax but may still need to pay sales taxes, intellectual property rights and abiding by labor laws

Design considerations include: There is often higher turnover in youth-owned co-ops as members grow out of the business, move away to college, or lose interest. There will need to be a strong  internal institutional memory meaning for example the co-op should pay attention to how it is tracking knowledge in order to cut down on learning curves.

Immigrant-owned co-ops

Immigrant-owned co-ops can help improve the situations of undocumented immigrants who are exceptionally vulnerable when they stand alone as workers. 

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Marketing Co-ops

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Social Co-ops

Social Co-ops Social co-ops essentially provide a space for informal sharing of good and services to its own members rather than the public or non-members 

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