Direct Selling Association’s Statement on U.S. Dept. of Labor Proposed Worker Classification Rule
Announcement Comes Days Before DSA Member CEOs Meet with Senior Administration Officials
Washington, D.C. – The Direct Selling Association (DSA) welcomes the recent announcement from the U.S. Department of Labor proposing a rule to clarify the distinction between employees and independent contractors under federal wage and hour laws.
The proposal would rescind the Department’s 2024 independent contractor regulation and restore an analysis grounded in economic reality and longstanding principles recognized by federal courts.
This proposal comes at an important moment for the direct selling channel. In the coming days, DSA member company CEOs will be in Washington, D.C., meeting with federal policymakers, including senior administration officials. This is part of ongoing engagement to ensure a broad understanding of how direct selling operates and the independence that defines the model.
“The Department of Labor’s proposed rule reinforces a fundamental distinction that has long defined direct selling: individuals choose to pursue building independent businesses on their own terms,”
said Dave Grimaldi, CEO of the Direct Selling Association.
“Direct sellers are not assigned work or directed in the manner of employees. They decide whether, when, and how to engage, and their success is driven by their own initiative. Clear and consistent standards grounded in economic reality help ensure that millions of American direct sellers can continue to operate independently, with the autonomy that defines our business model.”
For decades, direct selling has provided a pathway for millions of Americans to pursue entrepreneurship. Direct sellers exercise full discretion over their level of participation, their customer relationships, and the initiative they bring to the marketplace. This structural independence is the foundation of the model.
The Department’s proposed rule represents an important step toward reinforcing clarity and predictability for direct selling. Standards grounded in economic reality help ensure that regulatory frameworks accurately reflect how independent sellers operate while enabling companies to maintain compliance with federal law.
Direct selling is a well-established component of the American economy, supporting millions of individuals who value the ability to pursue entrepreneurship with minimal barriers to entry and complete control over how they engage.
DSA looks forward to continued engagement with the Department of Labor and federal policymakers throughout the rulemaking process.
SOURCE: Direct Selling Association
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