The Direct Selling Association (DSA) announced its support of a bi-partisan introduction of the Direct Selling and Real Estate Agent Harmonization Act. Direct sellers and real estate agents have long been recognized under the Internal Revenue Code (IRC) as independent contractors. This bill, the DSA believes, would “harmonize the Fair Labor Standards Act (FLSA) consistent with the IRC so that direct sellers and qualified real estate agents can clearly be defined as independent contractors across both statutes.”
The DSA sees this as important legislation given that the US Department of Labor is currently finalizing a rule on independent contractor status under the FLSA, which could result in confusion regarding direct sellers.
“The independent contractor status of direct sellers has been vital to the business model for decades,” said Joseph N. Mariano, DSA President. “This legislation recognizes there is bi-partisan support that direct sellers and real estate agents are true independent contractors. As Congress and the Administration debate the merits of independent work in our recovering economy, we hope that the independent contractor status of direct sellers and real estate agents will continue to be supported.”
