Congress·Reported·H.R. 3495

Congress proposes excluding direct sellers and many real estate agents from federal employee rules

Direct Seller and Real Estate Agent Harmonization Act

6 months ago·View on Congress.gov

Legislative Progress

House

Senate

President

Law

Key Points

Congress would say direct sellers and certain real estate agents are not “employees” under federal wage-and-hour law.
That would generally treat these workers more like independent contractors for things like minimum wage and overtime rules.
It targets people paid mostly through commissions or sales, like many real estate agents and direct sales sellers.
If passed, it could reduce pay-and-hour lawsuits and change how some companies structure contracts and work rules.

Labor EmploymentTaxesSmall Business

Impact Analysis

Personal Impact

How this policy affects specific groups of people

Mixed Impacts(3)

Gig Worker

Neutral

Small Business Owner

Neutral

Housing Assistance

Neutral

Milestones

3 milestones6 actions

Feb 11, 2026House

Placed on the Union Calendar, Calendar No. 420.

Feb 11, 2026House

Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-494.

Sep 17, 2025House

Ordered to be Reported (Amended) by the Yeas and Nays: 19 - 16.

Sep 17, 2025House

Committee Consideration and Mark-up Session Held

May 19, 2025House

Referred to the House Committee on Education and Workforce.

What Happens Next

Projected impacts based on AI analysis

In the weeks to a few months after the law takes effect.

Employers and brokerages update contracts, onboarding paperwork, and pay practices to match the clarified classification.

People starting these roles may see clearer “1099-style” terms, and fewer situations where companies track hours or offer employee-like payroll setups.

Over the following months and years.

Ongoing wage-and-hour disputes involving these roles shift toward state law or other legal claims instead of federal minimum wage/overtime claims.

Workers who believe they’re being treated like employees may have fewer federal options and may need to rely on state protections, which can be stronger or weaker depending on where they live.

Related News

4 articles

Business Wire·6 months ago

DSA Advocacy Drives Historic Committee Vote: H.R. 3495 Advances as Entrepreneurs Rally on Capitol Hill

Direct Selling Association says the House Education and Workforce Committee advanced H.R. 3495, which would exclude direct sellers and qualified real estate agents from “employee” status under the FLSA.

Direct Selling News·6 months ago

DSA Successfully Lobbies Congress and White House to Clarify Independent Contractor Status for Direct Sellers

Trade publication recap of the committee action on H.R. 3495 and the bill’s effect on treating direct sellers and real estate agents as independent contractors under federal wage-and-hour law.

Direct Selling News·4 months ago

DSA Hosts Legal + Regulatory Conference

Conference preview noting H.R. 3495’s committee advancement and framing the bill as central to the direct selling industry’s legal/regulatory priorities.