In July 2021, a small Rhode Island café, White Electric Coffee, became the first of its kind in the state to transition to a worker cooperative.
Worker cooperatives have become increasingly popular in the United States. In a worker cooperative, …
Cooperative
California Cooperative Economy Act
On February 19, 2021, California Assemblywoman Lorena Gonzalez introduced AB 1319, which included The Cooperative Economy Act (the “Act”). The Act’s objective is to introduce a worker cooperative model into the gig economy by permitting workers to form worker cooperatives …
Capital for Cooperatives Act
On May 20, 2021, Senator John Hickenlooper introduced four bills in Congress to help underserved individuals, communities, and small businesses, including the Capital for Cooperatives Act (S.1736) (the “Act”). The Act would amend lending criteria for certain Small …
American Rescue Plan and Broadband
In March 2021, Congress approved $1.9 trillion under the American Rescue Plan Act (“Act”), which included emergency funding to respond to the pandemic and its economic impact. In May 2021, the Treasury Department released the Interim Final Rule[1]…
The Effect of USPS Rate Increases on Cooperatives
On May 28, 2021, the United States Postal Service (USPS) filed notice with the Postal Regulatory Commission (PRC) for rate increases, which will be effective on August 29, 2021. The rate increases range from 5% to 8% for various products …
The Driving Force for The Drivers Cooperative
Uber and Lyft, well known ride sharing services, offer drivers flexibility and control over their schedules and workload. This independence, however, came at higher costs than anticipated for some drivers, who struggled to manage costs for maintenance, loans, and insurance. …
Formation Documents for Cooperatives Structured as Corporations
When a group interested in forming a cooperative is deciding between a cooperative structured as a corporation and a cooperative structured as an LLC, the group often has questions about the differences in the required formation documents and the ability …
Selling Preferred Shares in Cooperatives
This final post in the series addresses sales of preferred shares. Unlike common shares, preferred shares can offer dividends and in most states, can be sold to both members and non-members. Preferred shares offer cooperatives an opportunity to obtain funds …
Legal Requirements for Selling Common Shares in Cooperatives
Groups interested in forming a cooperative that is structured as a for-profit corporation often have questions about how shares are issued, who can purchase shares, and whether non-members can purchase shares as an investment in the cooperative. In this second …
The Role of Shares in Cooperatives
Groups interested in forming a cooperative that is structured as a for-profit corporation often have questions about how shares are issued, who can purchase shares, and whether non-members can purchase shares as an investment in the cooperative. In this first …