Mike Lee Introduces the Direct Seller and Real Estate Agent Harmonization Act

WASHINGTON - U.S. Senator Mike Lee (R-UT) today introduced the Direct Seller and Real Estate Agent Harmonization Act, which clarifies Fair Labor Standards Act provisions to ensure that direct sellers and qualified real estate agents are recognized as independent contractors under federal law, aligning with the federal tax code and creating hiring dependability for companies and workers alike. The legislation is co-sponsored by Senator John Curtis (R-UT) and has been introduced in the House of Representatives by Rep. Kevin Kiley (R-CA).

"For decades, moms and dads have supported their families through direct selling and independent real estate businesses in Utah and across the country," said Senator Lee. "Unfortunately, ambiguity in their federal classification has resulted in lawsuits that threaten entire industries and thousands of jobs. This legislation closes these loopholes and gives enterprising independent contractors clear legal status."

"We thank Senator Mike Lee for engaging with the direct selling community and bringing this legislation before the Senate," said Dave Grimaldi, CEO of the Direct Selling Association. "DSA represents people who choose to build businesses on their own terms. DSA's work is to bring their stories and experiences to Congress and make sure they have a voice in the laws that affect that choice, so no individual seller has to carry that responsibility alone."

The Direct Seller and Real Estate Harmonization Act

• Amends the Fair Labor Standards Act to clarify that the term "employee" does not include any direct seller or qualified real estate agent (as defined in Section 3508(b) of the Internal Revenue Code).
• Establish these workers as independent contractors-not by subjective interpretation but by statute-aligning federal law with federal tax code and creating hiring dependability for the companies and workers.
• Builds upon Senator Lee's 21st Century Worker Act, which simplifies employee classifications to cut red tape around hiring independent contractors and flexible work arrangements.

Read the bill text here.

Read the one-pager here.