The Securities and Exchange Commission has proposed a set of rule changes that would give internet platforms like Uber the option to give gig workers equity as part of their compensation. As Axios noted, companies like Uber and Airbnb have been asking the SEC to modify its rules so that they can give company stock to their drivers and contractors for quite a while now. However, previous commission heads were opposed to the idea.
Under the proposed changes to Rule 701, a five-year pilot program would allow internet platforms to issue equity to their workers, so long as it’s no more than 15 percent of the value of their compensation within a 12-month period. It must also be no bigger than $75,000 in value within a 36-month period. Companies would also be allowed to offer their workers registered securities using Form S-8 under the proposed amendments.