Senator Mike Lee Introduces Senate Companion To H.R. 3495

Direct Seller And Real Estate Agent Harmonization Act Brings DSA’S Legislative Effort Before Both Chambers Following House Committee Action

WASHINGTON, D.C. – Senator Mike Lee has introduced the Direct Seller and Real Estate Agent Harmonization Act in the U.S. Senate, a companion to H.R. 3495 that addresses direct sellers’ independent status under federal law. Senator John Curtis joined Lee as an original cosponsor of the bill.

“Direct sellers everywhere thank Senator Mike Lee for engaging with our community and bringing this issue before the Senate, where direct sellers’ experiences also need to be heard,”

said Dave Grimaldi, CEO of the Direct Selling Association.

“DSA fights to make sure the people who choose independence over traditional employment have a voice in the laws that affect that choice. No individual seller should have to carry that responsibility alone, and it is our work to ensure that the voices of the 11.6 million Americans who are involved in direct selling are a part of the conversation.”

The introduction establishes a parallel legislative effort in the Senate, marking a new stage in the Direct Selling Association’s (DSA) advocacy on behalf of individuals who choose independence over traditional employment.

“Greater consistency in how federal law recognizes independent sellers would provide sellers and companies more certainty to build their businesses,”

said Kim Drabik, Senior Vice President, Corporate Affairs for Plexus Worldwide and chair of DSA’s Government Relations Committee.

“As DSA member companies, we are putting our experience, relationships and resources into making that possible. When we actively participate in the legislative process, we help shape meaningful policies that strengthen our industry and create a positive impact for every direct selling company across the country.”

The legislation would amend the Fair Labor Standards Act to exclude direct sellers and qualified real estate agents, as defined in Section 3508(b) of the Internal Revenue Code, from its definition of “employee.” By incorporating those federal tax definitions, the bill specifies which individuals would qualify for the exclusion under federal law.

The Senate introduction follows the House Committee on Education and the Workforce’s advancement of H.R. 3495 in September 2025, when direct sellers gathered on Capitol Hill as part of DSA’s advocacy efforts. That committee action moved the House legislation forward. The Senate companion now brings the same classification issue before the other chamber of Congress.

The Direct Seller and Real Estate Agent Harmonization Act

• Amends the Fair Labor Standards Act to clarify that the term “employee” does not include any direct seller or qualified real estate agent (as defined in Section 3508(b) of the Internal Revenue Code).
• Establish these workers as independent contractors—not by subjective interpretation but by statute—aligning federal law with federal tax code and creating hiring dependability for the companies and workers.
• Builds upon Senator Lee’s 21st Century Worker Act, which simplifies employee classifications to cut red tape around hiring independent contractors and flexible work arrangements.

Read the bill text here.

Read the one-pager here.

About the Direct Selling Association (DSA)

We are the collective voice of the visionaries, entrepreneurs, trailblazing women, and innovators comprising the most powerful, people-driven distribution channel in the world. Our mission is to advance a policy and regulatory environment that embraces innovation, protects consumers, and empowers entrepreneurs across America and the globe to build businesses on their own terms.