AN ACT RELATING TO LABOR AND LABOR RELATIONS -- THE RHODE ISLAND OPPORTUNITY FOR EMPLOYEE OWNERSHIP ACT

SB 752 requires owners of qualifying Rhode Island businesses (private, small businesses with at least three workers) to notify all employees in writing within seven days of deciding to sell the business or transfer 51%+ ownership. Employees then have 30 days to form a group (QEG) to purchase the business, with negotiations and valuation taking up to 180 days. If employees successfully buy the business, the owner receives a capital gains tax exemption on sales under $1 million. The law ensures existing labor agreements continue and prevents outside control after the sale, directly affecting small business owners and their employees.