SEC Proposes to Allow Companies to Pay Gig Workers with Stocks
The Securities and Exchange Commission (SEC) has issued a proposed rule that would allow companies to use stock offerings to compensate gig workers. Specifically, the proposed rule would establish a 5-year pilot program to allow non-public companies to pay workers who use electronic platforms, such as a mobile app, with equity in the company in lieu of some portion of the wages they earn.
The proposed rule would allow gig workers to receive part of their pay through an equity issuance without the company having to register with the SEC for a compensatory offering. The proposed rule limits these equity payments to ensure that workers do not receive more than 15 percent of their annual income and no more than $75,000 in three years via an equity issuance.
The proposal was approved 3-2 with Republicans on the SEC in support and the Democrats opposed.
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