A bipartisan effort to clarify the independent contractor status of real estate professionals is gaining momentum on Capitol Hill.
Senators Mike Lee (R-Utah) and John Curtis (R-Utah) have introduced legislation that would establish consistent treatment for real estate professionals and direct sellers under federal labor law. The Direct Seller and Real Estate Agent Harmonization Act would clarify that qualifying professionals are independent contractors under the Fair Labor Standards Act, consistent with their longstanding treatment under the federal tax code.
The Senate action follows the House Committee on Education and Workforce’s advancement of companion legislation, H.R. 3495, introduced by Reps. Kevin Kiley (R-Calif.) and Henry Cuellar (D-Texas) in 2025.
The legislation comes as independent contractor status remains a defining feature of the real estate profession. According to the National Association of REALTORS®, 89% of its members operate as independent contractors. That structure gives real estate professionals flexibility to manage their businesses, work with clients and determine how they provide services.
NAR Supports Clarification
NAR welcomed congressional action on the legislation, which the association has supported in previous Congresses.
“The National Association of REALTORS® extends its gratitude to lawmakers in both chambers for advancing the Direct Seller and Real Estate Agent Harmonization Act,” says Shannon McGahn, NAR’s executive vice president and chief advocacy officer. “This commonsense, bipartisan legislation would provide important clarity under the Fair Labor Standards Act and ensure real estate professionals are treated fairly and consistently under federal law.”
McGahn also highlighted the importance of independent contractors to the broader real estate economy, which 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.
With the measure now introduced in the Senate and advancing in the House, supporters are pushing for congressional action to provide greater certainty for independent contractors.
NAR will continue advocating for the legislation as part of its efforts to protect the independent contractor model and preserve the flexibility that has long made real estate an attractive career for professionals across the country.
