Direct Selling Association Strongly Opposes Harmful United States Department of Labor Final Rule Regarding Independent Contractor Status

January 11, 2024

The Direct Selling Association (“DSA”) strongly opposes the final rule issued by the United States Department of Labor regarding employee or independent contractor classification under the Fair Labor Standards Act. The rule will create uncertainty for millions of direct sellers in the United States.

The final rule dismisses valid criticisms raised in the Notice of Proposed Rulemaking by DSA and could require high investments to start a business, limits the use of technology, diminishes high self-regulatory standards and disregards conflicting federal statutes defining direct sellers as independent contractors.

As one of longest standing business models that utilizes independent contractors, this comprises part time, flexible, supplemental income earning opportunities for millions of Americans. The rule seeks to undermine entrepreneurs and deny millions of American workers their right and preference to work independently.

The association will support efforts to ensure the rule does not take effect and continue to support more statutory clarity including H.R. 5419, bi-partisan legislation that clearly defines direct sellers as independent contractors.

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I have additional questions, who can I contact?

You may contact Adolfo Franco, Executive Vice President.