Washington Report

Advocacy Updates from Washington D.C.

NAR Advocates for Worker Classification Clarity

NAR recently submitted a letter to the House Small Business Committee for a hearing examining the rulemaking effects out of the U.S. Department of Labor. The Department of Labor (DOL) has jurisdiction over employment opportunities for workers across the country and its policies impact all industries, including the professionals in the real estate market. In the letter, NAR advocated for clarity and consistency from policymakers in an effort to minimize disruption and uncertainty around whether a worker is classified as an employee or an independent contractor. The letter also explains the benefits of the bipartisan legislation (H.R. 5419, the “Direct Seller and Real Estate Agent Harmonization Act”) that incorporates the Internal Revenue Code's statutory protection (26 U.S.C. §3508) for qualified real estate professionals as non-employees into the Fair Labor Standards Act (FLSA). DOL is currently undergoing an FLSA rulemaking examining worker classification and NAR has advocated for the same IRC recognition in that regulation.