In a major step toward aligning federal labor law with longstanding tax policy, the House Committee on Education and Workforce has advanced the Direct Seller and Real Estate Agent Harmonization Act, introduced by Reps. Kevin Kiley (R–Calif.) and Henry Cuellar (D–Texas). The bill aims to provide long-sought clarity by codifying that real estate professionals and direct sellers are to be treated as independent contractors under the Fair Labor Standards Act, a status they have long held under the federal tax code.
“For decades, the tax code has recognized direct sellers and real estate agents as independent contractors,” says 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.”
Currently, 89% of National Association of REALTORS® members operate as independent contractors. For decades, this classification has offered professionals the autonomy and flexibility to build their businesses and serve clients.
Industry Applauds the Bill
NAR voiced strong support for the bill during markup.
“The National Association of REALTORS® extends its gratitude to Education and 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,” says Shannon McGahn, NAR’s executive vice president and chief advocacy officer. “Just like we have in previous Congresses, NAR strongly supports this commonsense, 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.”
McGahn emphasized the broader economic impact of the real estate sector, noting that it contributes nearly 20% of U.S. gross domestic product. “Independent contractors are a vital part of the real estate economy, and this legislation affirms their role while reducing unnecessary confusion and regulatory burdens,” she says.
Support for the legislation also came from the California Association of REALTORS®.
“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),” says Heather Ozur, a Southern California real estate practitioner who is CAR’s 2025 president. “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.”
Next Steps
With bipartisan backing in committee, the legislation now moves to the full House for consideration. If enacted, the bill would harmonize labor and tax treatment of independent contractors in real estate—resolving legal ambiguities that have caused concern in recent years.
NAR will continue advocating for the bill as part of its ongoing commitment to protect the independent contractor model and preserve the flexibility that makes real estate a unique and attractive career path.
