HR 3495119th CongressIntroduced

Direct Seller and Real Estate Agent Harmonization Act

Introduced: May 19, 2025

Sponsor: Rep. Kiley, Kevin [R-CA-3] (R-California)

Housing & Urban Development

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Direct Seller and Real Estate Agent Harmonization Act would amend the Fair Labor Standards Act (FLSA) to clarify who counts as an “employee.” Specifically, it adds a new provision stating that direct sellers and qualified real estate agents (as defined in the Internal Revenue Code, section 3508(b)) are not considered employees under the FLSA. In practical terms, this means those workers would not be covered by federal minimum wage, overtime, or other FLSA employee protections. The bill was introduced in the House on May 19, 2025, by Rep. Kiley (joined by Rep. Cuellar) and referred to the Education and Workforce Committee; the text does not indicate any further action beyond introduction.

Key Points

1The bill amends 29 U.S.C. 203(e) by inserting a new paragraph (6) that excludes direct sellers and qualified real estate agents from the definition of “employee.”
2The exclusion references definitions of “direct seller” and “qualified real estate agent” as set forth in section 3508(b) of the Internal Revenue Code of 1986.
3By classifying these workers as non-employees under the FLSA, they would not be subject to federal minimum wage and overtime requirements that apply to employees.
4The change is narrowly targeted to these two worker categories and does not create new rights or protections beyond clarifying FLSA coverage.
5The bill’s effect depends on passage; as introduced, it does not alter state wage laws or other federal protections outside the FLSA.

Impact Areas

Primary group/area affected: Direct sellers and qualified real estate agents, and employers or firms that engage them as workers; federal FLSA coverage would be narrowed for these groups.Secondary group/area affected: Enforcement and compliance activities by the Department of Labor related to minimum wage and overtime claims; potential shift in misclassification considerations at the federal level.Additional impacts: Interaction with state labor and wage laws (states may still impose protections or classifications); potential tax and regulatory implications due to alignment with IRC definitions; overall workforce classification dynamics in industries reliant on independent contractor models (such as direct selling and real estate).

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