By Ann Brown
The Securities and Exchange Commission (SEC) recently issued rules that would permit public and private companies to offer equity compensation to gig workers.
The proposed pilot program would allow tech companies like Uber and Lyft to pay gig workers up to 15 percent of their annual compensation in equity instead of cash. Until now, SEC rules have not allowed companies to pay gig workers in equity, Reuters reported.
“As our economy and work arrangements evolve, we must be willing to experiment with concomitant changes to our regulations,” commissioners Elad Roisman and Hester Peirce wrote in a statement.
“Under the proposed guidelines, gig workers that provide services through a marketplace are eligible for stock compensation, not any consumers of those services. The commission is considering whether workers that sell goods could participate in the stock compensation program as well,” TechCrunch reported,
“The gig economy is here to stay. We are proposing to tweak one discrete area of our securities laws to allow the many Americans who engage in gig work because it provides a much-needed source of current income also build longer-term Click here to read entire article