Amidst the global surge of refugees and migrants seeking economic opportunities, Fordham Law Professor Gowri Krishna ’06 argues in this Co-op News article that member-managed limited liability companies (LLCs) have become critical for undocumented workers.
Examples from the United States
In the US, Gowri J. Krishna, a professor of law at Fordham Law School, has highlighted how member-managed LLC co-operatives have become critical for undocumented workers, particularly in industries like hospitality, construction, and domestic work. The US is home to approximately 11 million undocumented immigrants, two thirds of whom have lived there for over a decade. Of these, 7.8 million are part of the workforce, accounting for 5% of the total US labour force. Among undocumented immigrant men, 95% are working or seeking work, compared to 79% of US-born men and 84% of lawful immigrant men. Undocumented workers make up 11% of employees in restaurants and bars and 22% of workers in private households.Despite contributing significantly to the economy, undocumented immigrants face substantial barriers to financial stability. Fifty percent of undocumented immigrant households file income tax returns, paying 8% of their incomes in state and local taxes – totalling US$11.74bn annually – and contribute $13bn to payroll taxes while receiving only $1bn in benefits. Member-managed LLCs that are internally organised as co-operatives provide these workers with a pathway to economic security by sidestepping employment laws that would otherwise exclude them.
Krishna has worked with community-based organisations in New York City that focus on creating and scaling LLC cooperatives in low-income, immigrant communities. These co-operatives have raised workers’ earnings from $14 per hour in exploitative jobs to $33 per hour in dignified work. They now benefit from safer working conditions, reduced working hours (21-40 hours weekly instead of over 40), access to legal counsel, business insurance, and equitable ownership structures. This model has transformed jobs in domestic work, childcare, and elder care into dignified, secure livelihoods.
Read “From member-managed LLC to co-op reform for inclusive economies” on Co-op News.
