What is a worker cooperative?

A worker cooperative is a business that is owned and democratically controlled by its employees. Each worker-owner typically holds one share and one vote, regardless of role or seniority, and profits are shared among the members.

How it differs from other employee ownership

An ESOP gives employees shares as a retirement benefit but usually no vote. A worker cooperative gives them both a financial stake and a say in how the company is run. Board members are elected by the worker-owners, and major decisions go to a vote.

How big the sector is

There are roughly 750 to 1,000 worker cooperatives in the United States, employing somewhere around 10,000 to 15,000 people. Most are small, often under 20 people. The largest, Cooperative Home Care Associates in the Bronx, has over 2,000 workers. The sector is far larger in parts of Europe, particularly Spain and Italy.

Common industries

Food service, grocery, home care, cleaning, construction, printing and a growing number of technology and consulting firms. Ride-hail driver cooperatives have been the fastest-growing segment in recent years.

How they hire

Worker co-ops hire less often than conventional companies of the same size and rely heavily on referrals. Most have a probationary period before an employee can become an owner, and joining usually involves a buy-in and a membership vote. Expect the hiring process to weigh whether you want to help run the business, not only whether you have the skills.

Why it matters when you're job hunting

If you want a direct say in how your workplace operates, this is the category to look at. It is a small category, so listings are less frequent than for B Corps or climate companies, but they tend to be worth the wait.