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119-s-5646119th CongressWALLET

Direct Seller and Real Estate Agent Harmonization Act

Sponsored By: Senator Lee, Mike [R-UT]

Introduced

Summary

This bill would change the Fair Labor Standards Act to explicitly exclude direct sellers and qualified real estate agents from the law's definition of "employee." It does this by adding a new paragraph that relies on the Internal Revenue Code's definition in section 3508(b).

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  • Direct sellers and qualified real estate agents: The bill would remove these IRC‑defined categories from the FLSA employee definition, so those individuals would no longer be treated as "employees" under that section.
  • Employers and contracting entities: The bill would clarify which sales and real estate workers are treated outside the FLSA employee category when applying wage and hour rules.
  • Legal detail for courts and agencies: The bill revises FLSA section 3(e) by expanding the parenthetical cross‑references and adding a new paragraph (6) that points to Internal Revenue Code section 3508(b) for the excluded definitions.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 1 costs, 0 mixed.

Direct sellers and agents lose protections

If enacted, the bill would amend the federal wage law (the FLSA) so people who meet the Internal Revenue Code's definitions of “direct seller” or “qualified real estate agent” would not count as "employees." This would narrow who can claim federal minimum-wage and overtime protections under the FLSA. The change applies only to those who meet the IRC section 3508(b) definitions. The bill does not specify when the change would take effect.

Sponsors & CoSponsors

Sponsor

Lee, Mike [R-UT]

UT • R

Cosponsors

  • Sen. Curtis, John R. [R-UT]

    UT • R

    Sponsored 9/30/2026

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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