NAR Letter to Department of Labor Regarding Withdrawal of Independent Contractor Rule

Issue Date: April 12, 2021


On April 12 NAR sent a letter to U.S. Department of Labor Secretary Walsh. The letter provides comments in response to the Department of Labor’s (Department) withdrawal of the final rule on independent contractor status under the Fair Labor Standards Act (FLSA). In light of the ongoing challenges posed to businesses across the country because of the pandemic, NAR encourages the Department not to withdraw the final rule that provides needed clarity and certainty for how an employer may classify a worker.

As America recovers from the COVID-19 pandemic, it is important to recognize the long-standing role that small businesses owners, the self-employed, and independent contractors—including real estate agents—have played in contributing to the nation’s economy. Rather than withdrawing the final rule, the Department should be encouraging opportunities for more entrepreneurs and businesses to have flexibility in their ownership and operations, such as through the final rule’s economic realities test.