What is an Employee Cooperative? How Does It Work?: An Introduction for Employee-Members  - CLEO Skip to main content


An employee cooperative is a membership organization set up to market the labor and skills of its members through owning a business. It is owned by the members. Each member has one voting share. Its profits are allocated among the members on the basis of how much labor they put into the co-op. In co-ops, financial ownership is separated from share ownership, and each member has an internal account which holds his/her financial interest in the co-op.