The Direct Selling Association (“DSA”) filed comments today with the United States Department of Labor on a Notice of Proposed Rulemaking regarding employee or independent contractor classification under the Fair Labor Standards Act. The comments said the NPRM creates confusing standards for millions of direct sellers in the United States. The comments also stated the rule does not recognize technological advancements and guidance from other federal agencies that could force a choice between consumer protection and independent contractor status of salesforce members. DSA proposes incorporating 26 USC § 3508 in a final rule to ensure clarity for millions of independent businesses in the United States. A separate comment was filed by DSA and the National Association of Realtors emphasizing the need to incorporate 26 USC § 3508 into the final rule.  

“Retaining independent contractor status for independent salespeople has been a top priority at DSA for many years. Members of Congress, federal agencies and state legislators have all supported clear definitions to ensure that direct sellers are clearly defined as independent contractors. The standards and analysis in the United States Department of Labor NPRM could create uncertainty and does not recognize modern business practices of direct sellers. We hope the Department of Labor creates a standard in the final rule that will ensure clarity for millions of micro-entrepreneurs in the United States.” Said DSA President Joseph N. Mariano.

A copy of DSA’s comments can be found here.

The comments from DSA and the National Association of Realtors can be accessed here.