Direct Seller and Real Estate Agent Harmonization Act
Key claim: HR3495 would exclude real estate agents and direct sellers of consumer products from the FLSA definition of employee, removing federal minimum-wage and overtime coverage for those workers.
Abstract
(HR3495 · 119th Congress) Direct Seller and Real Estate Agent Harmonization Act This bill excludes a real estate agent or a direct seller of consumer products from the definition of an employee for the purpose of applying the Fair Labor Standards Act of 1938 (FLSA). Workers who are considered employees under the FLSA must be paid the minimum wage and are generally eligible to receive overtime compensation for hours worked in excess of a 40-hour workweek. Latest action (2026-02-11): Placed on the Union Calendar, Calendar No. 420.
Why this matters
FLSA employee status is the gateway to federal minimum-wage, overtime, and recordkeeping protections, so codifying a categorical non-employee carve-out for real estate agents and direct sellers would lock in independent-contractor treatment for two large workforces regardless of future DOL economic-realities rulemaking. For workers, it removes access to FLSA remedies and wage-hour lawsuits; for employers and brokerages, it provides classification certainty and reduces misclassification exposure. The proposal is a narrow, sector-specific classification clarification rather than a broader gig-economy framework.