Establishes an opportunity for employee ownership where the owner notifies all current full-time and part-time employees and provides them with a 30-day window in which to initiate a process to potentially purchase the business as a workers' cooperative.

Rhode Island Opportunity for Employee Ownership Act

This bill would create a new process in Rhode Island that gives employees a chance to buy the business they work for before it is sold to someone else. Specifically, when a business owner decides to sell their company, they would be required to notify all of their full-time and part-time employees about the intended sale. The employees would then have a 30-day window to signal their interest in purchasing the business themselves and begin exploring that option.

If employees want to move forward, the goal would be to purchase the business as a workers' cooperative — a type of company that is owned and democratically controlled by its employees. This is different from a traditional sale where an outside buyer, investor, or larger company purchases the business. The bill does not guarantee employees can buy the business, but it ensures they get a fair opportunity to try before the owner finalizes a deal with another party.

This bill would primarily affect small and medium-sized business owners who are planning to sell, as well as the employees who work at those businesses. Owners would gain a potential new pool of buyers — their own workforce — while employees would gain a formal right to be informed and considered as potential buyers. The bill is currently in the early stages of the legislative process, having been introduced and referred to the Senate Labor and Gaming Committee for further review.