AB 816 PASSED BECAUSE OF YOUR SUPPORT!
Because so many of you signed the Coalition's petition below the legislators in Sacramento knew that their constituents, YOU, wanted to see more cooperative enterprises take root in California!
NOTE: If you'd like to keep up to date with future worker cooperative state or local policy initiatives, SELC's worker cooperative publications (like our legal guide for Cooperative Conversions), or receive invitations to educational events about worker cooperatives, please sign up below! Thanks!
What is AB 816?
AB 816 will help small businesses, create jobs, and empower California communities by providing a business entity specifically for worker cooperatives within the existing Consumer Cooperative Corporations Law.
Read a detailed summary of the bill prepared by the California Worker Cooperative Policy Coalition.
How did people like you get involved?
They signed our petition below! We took the petition signatures to the California State Capital and told the assembly members and State Senators Californians wanted clearer paths to creating economic democracy at home!
AB 816: The California Worker Cooperative Act
AB 816 clarifies that the existing Cooperative Law applies to cooperatives in general, not just consumer cooperatives. It also creates more visibility for worker cooperatives and provides a framework for worker cooperative business formation. Worker cooperatives that organize under the amended Coop Law may elect to be governed as a worker cooperative, ensuring that workers will control the business in the future. AB 816 also raises the existing exemption from securities registration for the sale of memberships up to $1,000 (the current law only allows $300). That means you can crowdfund from your local community to invest (that's right, not donate, but actually invest!) in the creation and expansion of democratic, worker-owned businesses! AB 816 also provides strict guidelines for those outside investors regarding voting power and influence on the business.
AB 816 Provisions
Read the full current bill language and record of amendments.
We held an informational session regarding the 2015 Worker Cooperative Act on March 3rd, 2015 and recorded it for your viewing pleasure. Watch below at your leisure!
Arizmendi Association of Cooperatives * East Bay Community Law Center * Network of Bay Area Worker Cooperatives (NoBAWC) * The Sustainable Economies Law Center * U.S. Federation of Worker Cooperatives * Democracy at Work Institute
Thank you for signing our Petition!
Those below added their names because they believe that cooperatives can build community wealth while providing just and dignified livelihoods. It was their voices that let legislatures know we not only want but demand more worker owned businesses in our communities!
NOTE: The first time you sign into SELC's website, if you uncheck "Send me email updates," you will be unsubscribed from ALL email updates from SELC.
SELC does not have the ability to text you about this campaign.
We want to live in a society where enterprises and assets are owned and controlled by the communities that depend on them for livelihoods, sustenance, and ecological well-being.
The Sustainable Economies Law Center's Cooperatives Program works to vastly expand the legal resources and cultivate a fertile legal landscape for the growth of cooperatives for the benefit of workers. We provide education, advocacy, research, and advice for worker centered cooperatives, including the creation of legal documents and guidance for best practices.
COOPERATIVE PROJECTS & RESOURCES
Find our worker centered cooperative projects and resources for starting, supporting, or cultivating worker cooperatives below!
Peruse our Law Center's legal resource library for cooperatives, Co-opLaw.org, which provides a forum for sharing, organizing, and making sense of information related to the legalities of cooperatives, including sample bylaws, operating agreements, and plain english guides to coop law.
Find resources for worker self-directed nonprofits, that is nonprofit organizations seeking to provide all workers with the power to influence programming, change the conditions of their workplace, have voice in the direction of their own career paths, and provide guidance to the organization as a whole.
Find information on our project, Democratizing the Invisible Workforce, which works with low-income and immigrant communities to cultivate cooperative enterprises that meet the needs of our elders and people with disabilities and the workers that support them. Our first step in realizing this vision is to support the creation of a domestic care worker cooperative.
Read and download our facilitator guides so you can host your own intro workshop on the legal nuts and bolts of starting a worker cooperative called "Learning to Think Outside the Boss!" It includes a facilitator guide, skit, and powerpoint slides we've created to explain how the law works in, against, and for worker cooperatives.
Find more information about our critical work in partnership with Propsera, the Democracy at Work Institute, and others, to fill the gap in legal and cooperative resources to support immigrant leaders building economic resilience and job stability for their communities.
Find information on the San Francisco Bay Area's first Worker Coop Academy, an intensive multi-month training course for teams who want to operate democratically-run, worker-owned enterprises, including replication resources and links to Academies across the country.
Find our downloadable legal manuals in both English and Español on how to create and run a worker-owned enterprise.
Through our Law Center’s Resilient Communities Legal Cafe, we provide one-time legal advice and consultations multiple times per month across the San Francisco Bay Area. This is a space to come and discuss your cooperative enterprise at any stage of its development, from idea to conversion to operation. We also provide long term representation to a very limited number of clients. For those building worker cooperatives interested in longer term representation from our Law Center, please contact Ricardo S. Nuñez at email@example.com.
COOPERATIVE POLICY ADVOCACY
Find out about the Law Center's cooperative policy advocacy campaigns that put our livelihoods back in our control!
Current Advocacy Projects
- Oakland is poised to be the first city in the country to preferentially contract with local worker cooperatives.
Past Advocacy Projects
COOPERATIVE POLICY RECOMMENDATIONS
Our Center prioritizes cooperative ventures for a simple reason: We believe that enterprises and assets should be owned and controlled by the communities that depend on them for livelihoods, sustenance, and ecological well-being. The legal architecture of organizations and enterprises is, in many respects, the architecture of our economy. Legal structures dictate how wealth flows through our organizations and how decisions are made. Traditional enterprise models are designed to grow the wealth of people who already have wealth, giving all decision-making power to those same individuals. By contrast, cooperatives put wealth and decisions into the hands of workers and consumers, building community well-being and transforming local economies.
Want more info about our Center's Cooperatives work?
Contact Ricardo Nuñez - firstname.lastname@example.org
UPDATED JULY 2017
At a time when immigrant communities are facing multiple threats and vulnerabilities, it is critical to fill the gap in resources for immigrant cooperatives and to support the leaders who are building economic resilience for their communities.
|Photo Credit: Boss Tweed|
What if you were forced to leave everything you had ever known and move to a completely new place? What if this new place didn't value your contributions and demonized your community? Unfortunately, that's what's happening now. There is an increasing hostility toward immigrants in our workforce and in our communities. This resentment is pushing immigrants to find new pathways toward economic stability and self-determination.
In the past few years, immigrant-owned worker cooperatives have emerged as a vehicle for asset building and community resilience. Cooperatives are unique in their legal, financial, governance, and management structures, and they need regular support just like conventional businesses. Around the U.S., the growth of immigrant-owned worker cooperatives have outpaced that of cooperatives owned by non-immigrants! Those cooperatives, and more in formation, are seeking technical and legal support but finding little to none.
Immigrants have started building cooperative economies, but they lack culturally relevant and accessible resources to scale. That's why we're collaborating to fill the gap.
Collaborating to Fill the Gap
Sustainable Economies Law Center and Prospera, two backbone organizations supporting immigrant-owned worker cooperatives, have joined forces and began mapping out how to meet the needs of our immigrant-owned cooperatives! Read here about some of our past work with Prospera.
Prospera has helped establish more than a dozen immigrant-owned worker cooperatives over the past decade, and in recent years, has developed a range of programs to train and support immigrant leaders and entrepreneurs in developing cooperatives.
The Sustainable Economies Law Center is one of the only organizations in the U.S. that provides free or low-cost legal services and resources to worker cooperatives, and the Law Center is widely viewed as a leader in developing legal structures, policies, and other strategies to support the growth of a worker cooperative movement.
Prospera and the Law Center are now collaborating to develop trainings, events, support networks, clinics, and resources to meet the initial and ongoing legal and technical support needs of immigrant cooperatives. We are planning on rolling out these resources for Spanish and Tagalog speaking cooperatives in the Bay Area that will then be replicated for cooperatives across the country.
Prospera and the Law Center are planning on:
Building leadership and training peer support providers: We plan on training Spanish and Tagalog speaking cooperative members on legal, financial, governance, and operational matters essential to the success of cooperatives. This will provide a growing team of cooperative members the ability to provide leadership within their own cooperatives and support their peers in other cooperatives. In addition, the Law Center will provide substantial legal training to one or more members of Prospera’s cooperative development team.
Training lawyers and other professionals to support cooperatives: We plan on providing training to Spanish and Tagalog speaking lawyers and other professionals, in order to begin growing a network of technical support providers. The Law Center has provided similar training to lawyers across the U.S., helping the legal community gain cooperative literacy, but have been unable to connect with bilingual or multilingual lawyers to serve our immigrant communities.
Hosting regular gatherings and events to serve as a “one-stop-shop” for immigrant cooperative members seeking legal support: At least every six weeks, cooperative members and entrepreneurs in the Bay Area will be invited to attend an event that will combine workshops, discussions, a legal advice clinic, and a space in which cooperative leaders can build community, support their peers, gain access to a wide variety of resources, and build power for a growing immigrant cooperative movement. The Law Center has already provided legal advice to more than 700 entrepreneurs during similar events (called “Legal Cafes”) over the past four years. Early this year, the American Bar Association gave the Sustainable Economies Law Center the Louis M. Brown Award for Legal Access, in recognition that this model of service provision has been highly effective in meeting legal and other needs of low- to moderate-income entrepreneurs. Now, Prospera and the Law Center will collaborate to host similar events in which most or all content and advice will be delivered in Spanish.
Developing multi-lingual trainings, webinars, videos, online resources, and sample legal documents for immigrant cooperatives: Prospera and the Law Center are collaborating to develop a suite of linguistically and culturally appropriate resources for immigrant cooperatives across the U.S., including highly accessible and engaging legal documents, such as this cartoon LLC Operating Agreement, which was created by the Law Center for a cooperative incubated by Prospera. Resources will be made available on both organizations’ websites and on Co-opLaw.org (a resource site maintained by the Law Center).
Providing direct, ongoing support to immigrant-owned cooperatives: Both organizations plan on providing critical legal support and technical assistance to cooperatives in the Bay Area and beyond. This would include assistance with matters such as employment law, contracts, entity structure, financial operations, tax, governance, management, member training, workplace culture, and enterprise development.
Providing support to other cooperative development organizations: A growing number of community-based and economic development organizations have been reaching out to Prospera and the Law Center for help to develop programs to support or incubate cooperatives in immigrant communities. We plan on continuing to provide training and assistance to these organization as they develop their programs.
Building a National Ecosystem Supporting Immigrant-Owned Cooperatives
More info coming soon!
Why Immigrant-Owned Cooperatives?
To address the root causes of wealth inequality and institutional racism, we need to put ownership and control back in the hands of those most marginalized by the dominant economy. We are working with communities across the Bay Area and beyond to create new models of equitable development that build community wealth (not just individual wealth), empower everyday people as agents of positive change, and embed democratic control in the very fabric of the economy.
In the Bay Area, for example, there is currently no native Spanish speaker providing legal services to immigrant-owned cooperatives and there is no where immigrant cooperative members can go for legal advice, technical assistance, or peer support. Across the U.S., there are very few Spanish-language legal resources, guides, and sample documents for cooperatives. We are here to change that and build the cooperative economy that is centered on those marginalized by our current legal and economic systems.
UPDATED JULY 2017
We need economies made up of democratic workplaces that provide meaningful, dignified livelihoods to all people. That's why the SELC, Project Equity, and the East Bay Community Law Center created the Worker Coop Academy. The Academy catalyzes the formation and expansion of worker-owned businesses that will provide good jobs for low to moderate income workers.
Won't you help us reach our funding goal in order to build the cooperative economy of the Bay Area? Your funding will not only support facilitation of the Academy, but also the accreditation of its curriculum. We are working with Laney College to accredit the Worker Coop Academy so it can be offered for college credit across California! Give today!Donate
The Sustainable Economies Law Center's Grassroots Finance Program develops legal resources and policies that allow local community financing and ownership of enterprises and assets, with a focus on securities laws and local investing.
Why Grassroots Finance?
SO HOW DO WE DO IT? We believe that we need to look beyond conventional financing mechanisms and tap into other pools of capital, including community capital (savings and investments of ordinary people), retirement savings, foundation endowments, funeral and life insurance financing, and more. To unlock these pools of capital, the Law Center is looking at a combination of legal, policy, and coalition-building strategies. For a brief introduction, check out Farmland Finance for the Next Generation of Farmers.
Click below to learn more about our strategies, which include:
Securities Law Basics: Click here to watch a video presentation about securities law basics, featuring squirrel cartoons!
Legal Resource Library: Check out our Legal Resource Library at CommunityEnterpriseLaw.org for information on financing, local investing, business entities, employment, and land and housing. Also check out the Community Enterprise Blog!
California has a new securities law exemption for worker cooperatives! Click here to learn more about how worker cooperatives can raise capital using the new securities law exemption for community investors.
Grassroots Financing Guide for California Farmers: Check it out here!
If you have questions or would to get in touch about this project, contact Grassroots Finance Attorney, Cameron Rhudy at email@example.com.
This work is funded, in part, by a grant from the Clarence E. Heller Foundation.
By Simon Mont, Organizational Design Fellow //
How can nonprofits and movement workers committed to social transformation embody the change we want to see and become more effective, accountable, and equitable as we do it? In late September 2017, thirty-eight people from eighteen different organizations based in ten different states came together to answer this question and learn how to effectively govern, manage, and coordinate their organizations. Over three days, the gathered organizations each contributed to training, knowledge sharing, and relationship building to prepare the soil for a vibrant community of support for these organizations and more long into the future: it was the beginning of the Nonprofit Democracy Network (NPDN).Read more
Now, more than ever, we must learn to govern ourselves. As nonprofits and movement workers committed to social transformation, how can we embody the change we want to see and become more effective, accountable, and equitable as we do it? The Nonprofit Democracy Network is a community of practice, organizational development training program, and peer support network for nonprofit organizations that want to deepen democracy within their organizations and make our movements for justice more participatory, responsive, and leaderful.
On September 25-27, 2017, we convened a cohort of people from nonprofit organizations committed to implementing or deepening decentralized and participatory organizational practices. Through our own experiences practicing participatory governance and working with dozens of other organizations, we’ve learned that decentralized governance can create organizations that are more effective at advancing their mission, more adaptable and responsive to complex systems, more accountable to their communities, and more equitable and fun places to work!
We’ve also learned that self-governance takes practice, training, and a good support network. Starting with a three-day in-person intensive, we are providing training from a variety of methodologies, creating opportunities for structured peer support, and cultivating a network of people from worker self-directed nonprofits with a shared commitment to embodying our visionary politics.
The initial cohort included:
Participatory Training: An in-person intensive gathering to build community and learn about topics such as peer accountability, the role of a board of directors, fundraising, staff pay, participatory culture, decentralized decision making, meeting facilitation, conflict engagement, history and current political context of the nonprofit sector, and more! Some modules will be customized to address specific needs of participants.
Peer Support: After the in-person gathering, we are co-facilitating monthly peer support and mentoring check-ins to deepen practice and integrate learning over time.
Ongoing Network Building: Co-creation of a library of resources, and opportunities to identify and create appropriate infrastructure for ongoing collaboration and mutual support, rooted in the missions and capacities of cohort members. Examples could be co-writing and publishing a book on nonprofit democracy, organizing and anchoring regional cohorts, policy campaigns to remove barriers to nonprofit democracy, collaborative funding efforts, etc.
The content of the three day training focused on how to create, care for, and increase the impact of deeply democratic organizations. We will begin by situating ourselves within our current political-historical moment and exploring how self-governance and nonprofits relate to our work and our collective liberation. Within this context, we will teach each about how to design systems, implement specific practices, solve sticky problems, and strategize for long-term resilience and effectiveness. We will support each other in making specific plans about how to take learning back into our organizations.
We learn primarily through story and experience. Every participant has experiences attempting to embody their political visions. Every participant has learning to share. No participant (including the Sustainable Economies Law Center) is an expert. We will curate and organize stories, exercises, and experiments to help us establish a personal and embodied understanding. Certain topics (like what employment laws to look out for and what the legal constraints are for structuring a board of directors) will be taught through direct presentation.
Participants will dive deep into particularly sticky issues. Many groups struggle with a common set of issues that includes: determining pay, onboarding staff, hiring/firing, conflict engagement, counter-oppression, decision making, and agenda setting. We will pay specific attention to these issues to ensure that groups walk away more empowered to design systems that work for them. The Law Center will ask participants what they could benefit from learning in order to curate the content appropriately.
Participants will be able to see the forest through the trees. In addition to learning specific policies and practices, participants will understand how those parts hang together to create a coherent whole organization. This will enable participants to have more agency to tinker and improve over time. We will also maintain our awareness why we are doing this so that our commitment to collective liberation infuses every aspect of our learning.
We are building connections for an intersectional movement for social, economic, racial, gender, and ecological justice, rooted in a shared commitment to deep democracy. Because revolution takes practice!
Because of a new California law that passed last year, starting January 1, 2017, any worker cooperative corporation with seven or more members must now obtain workers compensation insurance for its worker-owners, even when everyone serves on the Board of Directors.
Although Assembly Bill (AB) 2883 was framed as a bill to clean up ambiguities in the code, it failed to take into account its impact on Cooperative Corporations. Many worker cooperatives are now being hit with enormous insurance bills costing worker-owners as much as 20% of their income. Prior to AB 2883, worker-owners had a choice in how this money was spent, sometimes setting it aside instead for higher wages that are paid directly to workers, or using it to provide comprehensive medical insurance. AB 2883 effectively takes this decision-making power away from worker-owners, undermining worker self-determination.
This article provides background, steps that cooperatives can take to respond, and information about the worker cooperative community’s current efforts to change the law.Read more
Worker cooperatives around California are being impacted by a new law requiring worker-owners to purchase workers compensation insurance. As a result, many cooperatives will have to cut worker pay and benefits. Will you join us in the effort to change the law?
Background on the Current Workers Compensation Legislation
In 2016, the California Legislature passed AB 2883, making changes to the workers compensation law that failed to take into account and will have an adverse impact on cooperatives. Previously, workers compensation insurance was not required for managing owners of businesses. This is still true for LLCs and partnerships, but AB 2883 made a very significant change for corporations, requiring that an owner hold at least 15% of the shares in order to waive workers compensation coverage. AB 2883 failed to consider the impact on cooperatives where members manage an enterprise collectively.
Previously, some worker cooperatives in California chose not to obtain workers compensation insurance for managing owners, opting instead to apply those funds toward health insurance, long-term disability insurance, or higher wages. In some industries, such as in food businesses, the cost of workers comp insurance will reduce workers’ take-home pay by as much as 15%. One worker-owned cafe has reported that AB 2883 will cause the cooperative to lose $200,000 in 2017. This is a substantial setback for the worker cooperative movement at a time when worker-ownership has been recognized as a path to better and more stable livelihoods in California. The new Labor Code laws as passed under AB 2883 have major implications. Read our guide on how to navigate the new worker's comp law on our blog here!
Worker-owners of a handful of cooperatives, including The Cheese Board Collective, Three Stone Hearth, Home Green Home, Drought Smart, Arizmendi Bakery, and Echo Adventures Team, have convened to form a campaign working group to change the law. Right now, we are gathering support from other cooperatives and organizations impacted by AB 2883.
Sign the Petition
This petition will call on California legislators to pass a bill that would give cooperatives the right to opt out of the workers compensation requirement. The bill would essentially restore the previous provisions of the law in its application to Cooperative Corporations: In cooperatives where all members serve as officers or directors, those members will be allowed to waive workers compensation coverage.
By adding your name to the petition, you are indicating your support for a bill that would allow cooperatives to opt out of the workers compensation requirement.
Our Vision: We want to live in a society where the domestic work industry is cooperatively owned, where workers are truly honored for the value they provide, and where consumers have dignity, respect, and independence.
Photo Credit: Nic Walker
Even though more than 4.5 million elders and people with disabilities are serviced by caregivers each year these workers are effectively invisible to most of America. The domestic work sector is inherently isolating and the industry itself is rife with incidents of worker exploitation. Workers don’t have a voice in the companies for which they work. Approximately 45 percent of caregivers live in households that earn 200 percent below the federal poverty level. Further, an estimated 900,000 caregivers do not themselves have health coverage. We can not allow this industry to continue operating this way. We will not allow domestic workers to remain in the shadows.
Democratizing the Invisible Workforce works with low-income and immigrant communities in order to cultivate cooperative enterprises that meet the needs of our elders and people with disabilities and the workers that support them. Our first step in realizing this vision is to support the creation of a domestic care worker cooperative. We believe that this enterprise will show how cooperatives can be a pathway for dignified jobs, worker control, and living wage employment for our low-income and immigrant brothers and sisters in the domestic work industry.
Why the Domestic Work Industry?
Domestic workers and caregivers are some of the most vulnerable workers in the nation. Most caregivers are women, and a large proportion are immigrants facing language barriers, immigration hurdles, poverty, and limited social networks. The lack of regulation in the domestic worker market additionally contributes to the vulnerability of workers. Without regulatory oversight or support networks, exploitation of caregivers continues to go unnoticed and unreported.
The work of caregivers continues to be undervalued even as demand for it rises. The need for domestic care services is projected to explode with the “silver tsunami,” the impending retirement of the baby boomer generation. Still, caregivers continue to operate in the shadows, with few workplace protections.
Why Worker Cooperatives?
Worker cooperatives, businesses owned by its workers, offer the industry an alternative solution that leads to the creation of dignified jobs for caregivers. Worker cooperatives can alleviate social isolation, secure fair compensation, and improve working conditions. Cooperatives prevent labor exploitation because they are owned and democratically governed by the employees themselves. They also reduce poverty because the employees share in the business’ profits. Cooperatives have been shown to improve the quality of domestic services by providing training and education for their members.
Worker cooperatives offer an abundance of advantages over traditional businesses and corporations. In particular, cooperatives are more likely to create stable fair-paying jobs, adopt environmentally sustainable business practices, provide higher levels of job satisfaction, and invest in the local community. When efficiently organized and managed, worker cooperatives provide the following benefits:
Wealth creation and economic self determination: In a worker cooperative, workers share directly in the business profits, giving groups of people an opportunity to become economically independent in a mutually-beneficial way. For example, worker-owners in the Bay Area’s Prospera cooperatives (formerly Women’s Action to Gain Economic Security) saw an increase of 158% in their incomes and an average return of 22 times their initial investments. The largest cooperative Prospera-incubated, Natural Home Cleaning Professionals, pays its members twice the average starting wage for commercial cleaners in the county.
Increased job security in economic downturns: In economic downturns, most corporations are narrowly focused on maintaining value for their shareholders, rather than maintaining employment for their workers. This typically means that corporations will lay employees off during economic downturns. By contrast, because worker-owners call the shots in their cooperative, they value preserving jobs foremost, rather than maintaining shareholder value. The result is that the workers have increased job security as owners of the business.
Control over the way their work is organized, performed, and managed: In a worker cooperative, workers take part in the governance of the business. This means workers have control over how their work is valued and organized. They have a say in how much they work and how they are compensated. Worker cooperatives also create opportunities for continued professional development and training of the worker-members.
How We Can Work Together
At the Sustainable Economies Law Center, we are available to provide a wide variety of tools and resources to assist workers and economic development specialists in the creation of worker cooperatives. Please reach out if you are interested in collaborating with us on any of the following:
Teach-ins: short but practical, participatory, and action oriented discussions!
Educational workshops: participatory trainings meant to provide deeper insights and understanding into the nuts and bolts of starting and operating a worker cooperative.
Referrals to technical assistance: Our Law Center not only trains attorneys and cooperative development professionals, we also are connected to a network of economic democracy practitioners who provide consulting, training, and support for new and existing worker cooperatives.
Legal information and advice: Through our Law Center’s Resilient Communities Legal Cafe, we provide one-time legal advice and consultations thrice monthly across the Bay Area. We also provide long term representation to a limited number of clients.For those building worker cooperatives in the homecare industry interested in longer term representation from our Law Center, please contact Charlotte Tsui.
If you are interested in learning more, please contact Charlotte Tsui at firstname.lastname@example.org.