The Direct Selling Association (DSA) announced its support of the Preserving Direct Seller Independence Act of 2021 H.R. 5038. The legislation introduced by Representatives Tim Walberg and Henry Cuellar would “clearly define direct sellers as independent contractors under the Fair Labor Standards Act (FLSA) consistent with the Internal Revenue Service Code.”
“The independent contractor status of direct sellers was vital to the 13.9% growth in the industry last year,” said DSA President Joseph N. Mariano. “Many Americans were looking for ways to earn some modest extra income while staying safe at home during the pandemic and direct selling to friends, neighbors and relatives was and is an attractive option for millions of Americans. […] I applaud Reps. Walberg and Cuellar for introducing this important legislation that recognizes direct sellers’ unique status under federal law. As Congress and the Administration debate the merits of independent work in our recovering economy, we hope that the independent contractor status of direct sellers as America’s original entrepreneurs will continue to be supported.”
Independent contractor status for direct sellers was affirmed in the Internal Revenue Code in 1983 as well as specific recognition under 43 state laws. The DSA believes that this reintroduced legislation would “incorporate the IRS Code language in the FLSA and reinforce the historical treatment of direct sellers as independent contractors under federal labor law.”
“America is filled with remarkable entrepreneurial spirit, and few understand that better than folks who are involved in direct selling on their own terms,” said Rep. Walberg. “These hardworking men and women make significant contributions to Michigan’s economy, generating over $990 million in sales last year alone. I am pleased to introduce this bipartisan legislation to provide certainty in the law, protect direct sellers’ independence, and allow economic opportunity to flourish.”
“Protecting and supporting independent direct sellers is a top priority of mine,” said Congressman Cuellar. “In Texas’ 28th Congressional District, there are nearly 8,600 small employer businesses, approximately 88,000 small business employees and more than $2.7 billion directed towards the small business payroll. This COVID-19 pandemic has shown all of us that small businesses are the fabric to our communities and that entrepreneurs are critical to our nation’s recovery. It is crucial that Congress remain above partisanship and pass common-sense economic policies like these to invest in our nation’s future. I will continue to champion small businesses, and entrepreneurship.”
