RI S2744

Owners of qualified Rhode Island businesses must notify all full-time and part-time employees when deciding to sell, giving employees an exclusive 30-day window to initiate a process to purchase the business as a worker cooperative before the sale is publicly announced.

Qualified businesses must have operated in Rhode Island for at least one year, have at least 3 employees (excluding the owner), be privately held, and meet U.S. Small Business Administration size standards.

Exemptions apply for sales or transfers to family members, sales necessitated by death, medical condition, deployment, natural disaster, or those compelled by court order.

The Rhode Island Small Business Development Center must create and maintain a publicly accessible resource list of entities qualified to offer guidance on starting, converting, or maintaining employee-owned businesses.

The act takes effect January 1, 2027, with the Rhode Island Commerce Corporation authorized to issue rules and regulations for implementation.