US tech firms can compensate gig-workers with equity under SEC proposal

The proposed temporary rules would allow gig workers to participate in the growth of the companies their efforts support, Clayton added, capped at 15% of annual compensation or US$75,000 (RM306,525) in three years. — Reuters

WASHINGTON: The US securities regulator on Nov 24 proposed a pilot programme to allow tech companies like Uber and Lyft to pay gig workers up to 15% of their annual compensation in equity rather than cash, a move it said was designed to reflect changes in the workforce.

The Securities and Exchange Commission (SEC) said Internet-based companies may have the same incentives to offer equity compensation to gig-workers as they do to employees. Until now, though, SEC rules have not allowed companies to pay gig workers in equity.