The U.S. Department of Labor issued the final independent contractor rule assessing how workers should be classified under the Fair Labor Standards Act (FLSA) given the department’s concerns with worker misclassification. The FLSA is the law that sets standards for minimum wage, overtime pay, recordkeeping, youth employment standards and other rules impacting employees in the private sector. Real estate professionals generally are not subject to the FLSA, if they are independent contractors; however, there are concerns that application of this rule may lead to the misclassification of real estate professionals as employees. The National Association of Realtors (NAR) is concerned about the unintended consequences of the law and its impacts for real estate professionals. NAR has worked with Congress to introduce H.R. 5419, the Direct Seller and Real Estate Harmonization Act, which is legislation to amend the FLSA to clarify the definition of “employee” as it relates to direct sellers and real estate agents, and for other purposes. Read more on the NAR website.
Source: Nar.realtor; 1/12/2024