House Committee Advances Rep. Kevin Kiley’s Bill to Align Labor Laws with Tax Code for Direct Sellers and Real Estate Agents

WASHINGTON – The Committee on Education & the Workforce advanced Rep. Kevin Kiley’s (R-CA) Direct Seller and Real Estate Agent Harmonization Act. The bill aligns federal labor law with long-standing tax rules.

It clarifies that direct sellers and real estate agents are considered independent contractors under the Fair Labor Standards Act, just as they are under the tax code. This ensures consistency and certainty for workers and companies alike. 

“For decades, the tax code has recognized direct sellers and real estate agents as independent contractors,” said Congressman Kevin Kiley. “These workers deserve our support to thrive, not more bureaucratic uncertainty. Clarifying our labor laws will support hard work and innovation while providing workers with the flexibility they so clearly need.”

“The National Association of REALTORS® extends its gratitude to Education & Workforce Committee Chairman Tim Walberg, Ranking Member Bobby Scott, and the rest of the Committee for passing Congressman Kiley’s Direct Seller and Real Estate Agent Harmonization Act in today’s markup. Just like we have in previous Congresses, NAR strongly supports this common sense, bipartisan bill, which is designed to clarify the Fair Labor Standards Act and ensure that real estate professionals are treated fairly and consistently under federal law,” Shannon McGahn said, Executive Vice President and Chief Advocacy Officer for the National Association of REALTORS®. “89% of NAR members are currently classified as independent contractors, and the real estate market contributes nearly 20% to our country’s GDP. Independent contractors are a vital part of the real estate economy, and this legislation affirms their role while reducing unnecessary confusion and regulatory burdens.”

“The California Association of REALTORS® applauds the House Committee on Education and Workforce for advancing the Direct Seller and Real Estate Agent Harmonization Act (H.R. 3495),” Heather Ozur said, President of the California Association of REALTORS®. “This legislation is essential to providing clarity under federal labor law and protecting the independent contractor status that allows real estate professionals to build their businesses and serve consumers. We are grateful to Congressman Kevin Kiley for leading this effort and look forward to working with him and the Committee to ensure this important bill continues to move forward.”

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