Study Overview
This article examines the potential formation of an Association of Cooperative Labor Contractors (ACLC) in light of the goals of the California Future of Work Commission. An ACLC would give contract workers an ownership stake in the cooperative labor contractors (CLCs) that employ them. By linking the CLCs to an association that provides shared services and upholds labor standards, an ACLC could present a more equitable employment model. An ACLC also addresses specific challenges faced by both workers and firms in contract labor markets today.
Study Results
The analysis presented here finds meaningful opportunities for an ACLC to improve job conditions for contract labor. These include the opportunity to leverage competitive advantages of worker ownership in staffing; the opportunity for scale associated with shared services (such as HR management, employer of record services, capital access, and technology) provided by the association; the opportunity for workers to access profit-sharing benefits and ownership; and the overall opportunity for bold experimentation that an ACLC represents. However, significant challenges exist for CLCs. These include assuming employer liability for workers who are staffing other companies, securing market share, and competition in low-wage sectors known for labor violations. Additionally, there is tension between the need for cohesive workplaces and the reality of temporary staffing arrangements. Short-term contracts and highly mobile workforces can hinder CLCs from fully leveraging the competitive advantages of participatory, worker-owned business models.
Intervention: Employee ownership models
Research Partner: Institute for the Study of Employee Ownership and Profit Sharing
Populations: Low-wage workers
Working Paper: Scharf, Adria. 2025. Article 8: Analysis of the Association of Cooperative Labor Contractors (ACLC)
IBSI Funding Acknowledgement: Ownership Initiative
News & media
The Promote Ownership by Workers for Economic Recovery Act (AB 2849) Panel
June 13, 2023
The Promote Ownership by Workers for Economic Recovery Act (AB 2849), codified in Labor Code sections 10000-10010) establishes a panel to study the creation of an Association of Cooperative Labor Contractors, among other potential activities, to facilitate the growth of democratically-run high-road cooperative labor contractors.