Direct Selling Association Supports Congressional Review Act Resolution on Department of Labor Worker Classification Rule

March 6, 2024

The independent contractor status of millions of entrepreneurial direct sellers who independently operate and own their  businesses is of paramount importance to the Direct Selling Association (“DSA”). Accordingly, DSA strongly supports the bicameral Congressional Review Act (“CRA”) resolution introduced today by Congressman  Kevin Kiley (R-CA) and Senator Bill Cassidy, M.D. (R-LA)  that would overturn the Department of Labor’s (DOL) final worker classification rule. The rule threatens the ability for millions of direct sellers to operate their businesses as independent contractors. The vague and complicated final rule creates uncertainty for direct sellers who enjoy the flexibility to operate their businesses and earn supplemental income. It would have a disproportionate negative impact on populations the rule seeks to protect. 75% of direct sellers are women and 23%  are Hispanic.

As one of the longest standing business models that utilizes independent contractors, the final rule did not address core concerns raised by DSA that would continue to recognize our legitimate status. We look forward to working with Congressman Kiley and Senator Cassidy to support the CRA and urge the House and Senate to support the resolution and stand with millions of constituent direct sellers.  

DSA is the national trade association for companies that offer entrepreneurial opportunities to independent sellers to market and sell products and services, typically outside of a fixed retail establishment. In 2022, direct selling took place across the United States, generating $40.5 billion in retail sales and 6.7 million entrepreneurs in the U.S. sold products or services through the direct selling channel, providing a personalized buying experience for 40 million customers.

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I have additional questions, who can I contact?

You may contact Adolfo Franco, Executive Vice President.