The Direct Selling Association (DSA) has filed comments with the United States Department of Labor, stating that the Notice of Proposed Rulemaking, as it pertains to employee or independent contractor classification under the Fair Labor Standards Act, creates confusing standards for millions of direct sellers in the U.S. This NPRM also has the potential, the comments stated, to force a choice between consumer protection and independent contract status of salesforce members because of its failure to recognize technological advancements and guidance from other federal agencies.
As a solution, the DSA proposed incorporating 26 USC § 3508 in a final rule, which the association believes would help clarify the ruling for direct sellers. An additional, separate comment was filed by both the DSA and the National Association of Realtors, stating again 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,” said DSA President Joseph N. Mariano. “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.”
