Please ensure Javascript is enabled for purposes of website accessibility Worker co-op legislation passes Senate, heads to governor’s desk

Worker co-op legislation passes Senate, heads to governor’s desk

Rep. Rick Krajewski    October 19, 2026 | 5:43 PM

HARRISBURG, Oct. 19 – Legislation (H.B. 135) introduced by state Rep. Rick Krajewski, D-Phila., unanimously passed the Pennsylvania Senate today (50-0) and will now head to the governor’s desk to be signed into law. 

“This is commonsense, bipartisan legislation which will make it easier to start a worker cooperative,” Krajewski said. “Co-ops allow workers to wholly own the products of their labor and promote values of democracy, sustainability, and self-determination. Co-ops are proven viable business models and we should do what we can to support workers.”

H.B. 135 would lower the number of workers required to form a cooperative from five to three, opening the door to more potential cooperatives to form. Under existing law, would-be cooperative entrepreneurs often choose instead to start LLCs. If they wish to become a worker cooperative later, it requires a burdensome and cost prohibitive refiling process.

“This is a small change which will have a huge impact for start-up and conversion worker-owned and democratically run cooperative businesses,” wrote Corey Reidy, Cooperative Development Director at the Philadelphia Area Cooperative Alliance.

“More worker-cooperatives will be able to choose the entity which was created for them and will give them the most benefits -- all of which will support the strength of their business and foster further workplace democracy in Pennsylvania.”

Cooperatives across the state supported the legislation, such as Ryan Kudasik, a founding member of the Keystone Tree Crops Cooperative, a cooperative of tree crop growers across PA and the Mid-Atlantic region.

“Cooperatives are an essential part of the business landscape in Pennsylvania, with over 400 enterprises operating in farming, housing, energy, finance, and more,” said Kudasik. “We've accomplished more together than we could on our own. We would like to see more doers in Pennsylvania be given that same opportunity.”

“I appreciate all of my colleague’s support, especially across the aisle and in the State Senate,” said Krajewski. “When we so often feel stuck in a political stalemate, it’s a pleasure to get things done together for workers.”