US Tech Firms Can Compensate Gig-Workers With Equity Under SEC Proposal

Rideshare driver Jesus Jacobo Zepeda of Lancaster, California takes part in a rally as part of a statewide day of action to demand that ride-hailing companies Uber and Lyft follow California law and grant drivers “basic employee rights,” in Los Angeles, Calif., on Aug. 20, 2020. Mike Blake/Reuters

The U.S. securities regulator on Tuesday proposed a pilot program to allow tech companies like Uber and Lyft to pay gig workers up to 15 percent 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.