Direct Seller and Real Estate Agent Harmonization Act

The big picture: H.R. 3495 updates the definition of 'employee' in the Fair Labor Standards Act, making it clear that direct sellers and qualified real estate agents aren’t covered by traditional labor protections like minimum wage and overtime. That means companies wouldn’t have to treat them as employees for federal labor law purposes—they'd be more like independent contractors. This would align labor law with how these workers are already treated under tax law, eliminating confusion and possible lawsuits.

Zoom in: The bill references IRS Code Section 3508 to define 'direct sellers' and 'qualified real estate agents.' This brings clarity for businesses worried about legal risks when classifying workers, but also removes access to federal wage-and-hour protections for a sizeable workforce.

Between the lines: Supporters—often industry groups—say the bill protects flexible work and prevents lawsuits. Critics argue it could leave workers with lower pay, fewer protections, and little recourse if abused by companies. The move reflects bigger national debates around the gig economy and the future of work.