The Direct Selling Association (DSA) announced that the House Committee on Education and the Workforce, chaired by Rep. Tim Walberg (MI-5), successfully moved The Direct Seller and Real Estate Agent Harmonization Act out of committee, marking the most significant legislative victory for the direct selling channel in decades.
The milestone vote coincided with DSA’s annual Direct Selling Day on Capitol Hill, where 85 direct sellers and executives from across the country are meeting with more than 100 elected officials to highlight the channel’s impact and advocate for independent entrepreneurs.
H.R. 3495 would explicitly define direct sellers and real estate agents as independent contractors under the Fair Labor Standards Act (FLSA), harmonizing federal law with the Internal Revenue Code, which has recognized this classification since 1982. The bill provides clarity and protection for millions of Americans who build businesses in these industries, reducing legal uncertainty and strengthening entrepreneurial opportunity.
“This is proof that advocacy works,” said Dave Grimaldi, CEO of the Direct Selling Association. “We brought entrepreneurs from across the U.S. to Capitol Hill to share their stories and explain the real-world value of this channel. Today’s committee vote is a historic win for independent workers and shows the power of collective voices. DSA and its members have pushed for this clarity for decades, and this milestone brings us closer than ever to protecting the freedom to work independently and build businesses on your own terms.”
Direct Selling Day is led by DSA to connect entrepreneurs directly with policymakers and reinforce the economic significance of direct selling, which includes $34.7 billion in annual retail sales, $111 billion in total U.S. economic impact, and $15.5 billion in tax revenue. Delegates are presenting lawmakers with research and policy briefings developed by DSA, reinforcing its role as a trusted partner to Congress and state officials.
The advancement of H.R. 3495 will amend the FLSA of 1938 to clarify the definition of employee as it relates to direct sellers and real estate agents. This momentum reflects DSA’s long-term leadership, coalition-building, and commitment to protecting micro-entrepreneurs and consumers alike.
