A bill to amend the Fair Labor Standards Act of 1938 to clarify the definition of employee as it relates to direct sellers and real estate agents, and for other purposes.
About This Bill
Committee
Latest Action · September 30, 2026
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
This bill amends the Fair Labor Standards Act to clarify that direct sellers and qualified real estate agents are not considered employees under federal labor law. By referencing definitions already established in the Internal Revenue Code, the legislation creates a formal exemption that prevents these workers from being classified as employees entitled to minimum wage, overtime pay, and other employee protections. The bill affects millions of workers in direct sales (such as those selling products through multi-level marketing companies) and real estate agents who work on commission. The legislation does not establish new funding requirements or implementation timelines. Supporters argue this clarifies existing law, while critics contend it may reduce worker protections for independent contractors in these industries.
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