Gig Economy Companies Could Soon Be Allowed Compensate Workers with Stock
Gig economy companies could offer independent contractors up to 15% of their compensation in stock under new SEC regulations. Food delivery worker pilot program proposed
Under a new Securities & Exchange Commission (SEC) proposal, technology companies that rely on gig economy workers, such as DoorDash and Instacart, could soon be allowed to compensate their independent workforce with stock. The SEC has proposed a pilot program that allows food delivery workers or drivers to get paid up to 15% of their compensation in stock rather than cash. It’s important to note that gig workers currently cannot be paid in equity as they are not considered employees. In addition, it also appears that the rule is mostly focused on private companies (i.e. Uber & Lyft, which are publicly-listed, contractors may not immediately be a beneficiary of any new rules).
“Workers who participate in the gig economy have become increasingly important to the continued growth of the broader U.S. economy…The rules we are proposing today are intended to allow platform workers to participate at a measured level…in the growth of the companies that their efforts support.” - SEC Chairman Jay Clayton
The SEC proposal will be open for a 60-day public comment period and will need new Biden administration leaders to embrace the policy for it to come into effect.
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