Due to the evolution of the composition of employees in the workplace, particularly with the development of the gig economy attributable to platform-based companies, the SEC is seeking to update its rules to permit a company to provide equity compensation to certain ‘platform workers’.
The following are the key impacts of these two proposed rule amendments.
Proposed temporary rules for platform workers
The development of the gig economy has resulted in new work relationships, including ‘platform workers’ who provide services to a company through an internet- or technology-based platform (e.g. ride-sharing, delivery)
Proposed amendments to modernize compensatory offering framework
The proposed amendments to Rule 701 would revise:
The proposed amendments to Form S-8 would:
The proposed amendments impacting both Rule 701 and Form S-8 would: