This act shall be known, and may be cited, as the Promote Ownership by Workers for Economic Recovery Act.
Chapter 1General Provisions
Section § 10000
This law is called the Promote Ownership by Workers for Economic Recovery Act. It signifies a focus on encouraging workers to have an ownership stake in their companies to boost economic recovery.
worker ownership economic recovery employee stake business recovery employee investment economic empowerment company ownership worker empowerment economic resilience stakeholder involvement
Section § 10001
This law focuses on the Future of Work Commission, created to study and make recommendations for California's employment landscape. It aims to address potential future jobs, close the employment and wage gap, and improve workforce development and job quality. The Commission's report suggests creating more jobs, reducing working poverty, developing modern worker benefits, and preparing for technological and climate changes that affect jobs.
Additionally, the law discusses the benefits of worker cooperatives, which are democratically run businesses that can enhance economic development and provide more equitable pay and job security. The Legislature is considering how cooperatives can support the Commission's goals, especially for underserved communities.
(a)CA Labor Code § 10001(a) On August 14, 2019, the Governor signed Executive Order No. N-17-19 establishing the Future of Work Commission tasked with studying, among other matters, “the potential jobs of the future and opportunities to shape those jobs for the improvement of life for all of California,” “policies and practices that will help California’s businesses, workers, and communities thrive economically, while responding to rapid changes in technology and workplace structures and practices,”
“policies and practices that will close the employment and wage gap for Californians,” “strategies for engaging employers in the creation of good, high-wage jobs of the future,” and “workforce development, training, education, and apprenticeship programs for the jobs of the future.”
(b)CA Labor Code § 10001(b) In March 2021, the Future of Work Commission issued its report, “A New Social Compact for Work and Workers,” recommending that, among other actions, California help (1) ensure the creation of sufficient numbers of jobs for everyone who wants to work, including by extending financial and technical assistance to mission-oriented businesses, (2) eliminate working poverty, including by creating supports for workers to organize in unions and worker associations as well as supporting “high-road” employment, (3) create a 21st-century worker benefits model and safety net, including by developing a portable benefits platform and encouraging apprenticeship and other
skill-building programs, (4) raise the standard and share of quality jobs, including by creating a California Job Quality Incubator to support the increase of high-quality jobs, and (5) futureproof California with jobs and skills to prepare for technology, climate, and other shocks, including by providing incentives to the private sector to invest in worker training.
(c)CA Labor Code § 10001(c) The Legislature finds and declares that a California-focused federated worker cooperative system may advance these objectives by encouraging the expansion of democratically run high-road cooperative businesses that promote equitable economic development, reduce inequality, and increase access to living-wage jobs. Worker cooperatives have been shown to convey wealthbuilding and other significant benefits to workers, including autonomy from larger economic forces, more resiliency during economic downturns, lower workforce turnover, greater voice in health, safety, and other
workplace issues, and more equitable pay. The Legislature wishes to study how a federated worker cooperative system could advance the goals of the Future of Work Commission, particularly as they apply to historically underresourced communities.
Future of Work Commission job creation wage gap workforce development worker benefits high-road employment job quality worker cooperatives economic development living-wage jobs equity apprenticeship programs worker training underresourced communities portable benefits
