Rhode Island Bill Would Provide Information on Employee Ownership When Businesses Are Closing

A bill in Rhode Island would require that employees be notified about their right to make a bid to purchase the business in the event of a mass layoff or closure. The Local Ownership Opportunity Act (H.7799 and S. 2871) would require a poll of employees to measure interest in a worker buyout. Employees could then enter into negotiations to buy the business through a worker cooperative. Worker buyouts in these situations have not been common for decades and can be very difficult to finance.