NAR has launched a Call for Action asking members of Congress to cosponsor H.R. 5419, the Direct Seller and Real Estate Agent Harmonization Act, to ensure real estate agents maintain their independent contractor status under the Fair Labor Standards Act (FLSA). 

In California, 85% of real estate agents choose to do business as independent contractors. C.A.R. successfully included provisions in state laws and regulations, including AB 5, protecting REALTORS®’ ability to work as independent contractors. At the federal level, the Internal Revenue Code carves out real estate professionals who choose to work as independent contractors. Unfortunately, the Department of Labor ignores these carve-outs in its Final Rule on determining independent contractor or employee status. This has made the rules unclear for how real estate agents can ensure they are doing business as independent contractors.

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