Reps. Kevin Kiley (R-CA) and Henry Cuellar (D-TX) reintroduced the bipartisan Direct Seller and Real Estate Agent Harmonization Act on Monday, which amends the Fair Labor Standards Act of 1938 to protect the independent contractor status of real estate agents and direct sellers.
For over 40 years, real estate professionals and direct sellers have been classified as independent contractors under the Internal Revenue Code. However, that same clarity does not exist under the FLSA, exposing these workers to legal uncertainty and potential reclassification.
“It is crucial for Congress to clarify the definition of an Independent Contractor under the FLSA because it will help protect independent contractors and their businesses,” Rep. Kiley said. “If we don’t pass this bill, independent contractors, realtors, and direct sellers are susceptible to being labeled as ‘employees’ by future administrations, which would ruin their business.”
“Real estate agents and direct sellers have been treated as independent contractors under the tax code for over 40 years,” said Congressman Cuellar. “Our bill updates outdated labor law, brings clarity to federal policy, and protects the right of these professionals to work independently and build their businesses.”
“The National Association of REALTORS® applauds Congressman Kiley for reintroducing the Direct Seller and Real Estate Agent Harmonization Act. NAR strongly supports this common sense, bipartisan bill, which brings clarity to the Fair Labor Standards Act and ensures that real estate professionals are treated fairly and consistently under federal law,” Shannon McGahn said, Executive Vice President and Chief Advocacy Officer for the National Association of REALTORS®. “The real estate market contributes 18% to our country’s GDP, and independent contractors are a vital part of the real estate economy. This legislation affirms their role while reducing unnecessary confusion and compliance burdens.”
“California REALTORS® strongly support the Direct Seller and Real Estate Agent Harmonization Act, and we thank Congressman Kiley for championing this critical legislation,” said Heather Ozur, president of the CALIFORNIA ASSOCIATION OF REALTORS®. “For decades, real estate professionals have had the ability to choose to work as independent contractors — a model that offers the flexibility and autonomy essential to our industry. This bill provides much-needed clarity under federal labor law and ensures parity with California state law so that real estate agents can continue building their businesses without fear of misclassification or unnecessary regulatory confusion.”
