US tech firms like Uber, Lyft, and DoorDash could pay gig workers up to 15% of their compensation in stock under new proposal
- US tech firms including
Uber, Lyft, and DoorDashcould offer independent contractors up to 15% of their compensationin stockunder a new regulatory proposal.
- The proposal addresses heated debate in favor of allowing the fast-growing gig economy to enjoy more traditional benefits like job security.
SEC's proposal will be open for 60 days of public comment.
- It is unclear if President-elect Joe Biden's new SEC pick will finalize the pilot program.
The regulator proposed a pilot program for tech platforms that employ food-delivery workers or drivers to get paid up to 15% of their compensation in stock rather than cash. Gig workers could not be paid in equity previously, but regular employees could.Food delivery workers have especially played a critical role in the US economy during the pandemic. The proposal addresses labor activist efforts that aim to improve job security and
Both Uber and Lyft were sued earlier this year by the California attorney general to enforce a labor law that requires their gig workers to receive the same benefits and treatment as employees. But the companies won a referendum, called Proposition 22, that allows them to continue compensating their app-based workers as independent contractors rather than workers on their payrolls.Read More: Morningstar's top stock pickers say these are the 10 highest-conviction stocks they recommend — which top fund managers recently piled their money into
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