S. 5646Senate119th Congress (2025-2027)In Committee

Direct Seller and Real Estate Agent Harmonization Act

A bill to amend the Fair Labor Standards Act of 1938 to clarify the definition of employee as it relates to direct sellers and real estate agents, and for other purposes.

AI-Generated Summary

Updated October 10, 2026 at 5:52 AM UTC

The Direct Seller and Real Estate Agent Harmonization Act amends the Fair Labor Standards Act to clarify that people who work as direct sellers or qualified real estate agents are not considered "employees" under the law. This change means those workers would not be covered by the Act’s minimum wage, overtime, and other labor protections. The amendment primarily affects individuals and businesses that use direct‑selling or real‑estate‑agent models.

Key Provisions

Adds a new paragraph (6) to the FLSA definition of employee stating that the term does not include any direct seller or qualified real estate agent, as defined in the Internal Revenue Code.
Renumbers the existing list of exclusions to incorporate the new paragraph, ensuring the definition reflects the added exclusion.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Health, Education, Labor, and Pensions Committee

September 30, 2026

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SenateIntro Referral

Introduced in Senate

September 30, 2026

SenateIntro Referral

Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Health, Education, Labor, and Pensions Committee

September 30, 2026

Bill Text

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Introduced in SenateIssued September 30, 2026

119th CONGRESS

2d Session

S. 5646

IN THE SENATE OF THE UNITED STATES

September 30, 2026

Mr. Lee (for himself and Mr. Curtis) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions

A BILL

To amend the Fair Labor Standards Act of 1938 to clarify the definition of employee as it relates to direct sellers and real estate agents, and for other purposes.

Short title

This Act may be cited as the Direct Seller and Real Estate Agent Harmonization Act.

Definition of employee

Section 3(e) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(e)) is amended—

(1)

in paragraph (1), by striking paragraphs (2), (3), and (4), and inserting paragraphs (2), (3), (4), (5), and (6),; and

(2)

by inserting after paragraph (5) the following:

(6)

The term employee does not include any direct seller or qualified real estate agent (as such terms are defined in section 3508(b) of the Internal Revenue Code of 1986).