The U.S. Department of Labor's (DOL) final rule regarding how workers are classified under the Fair Labor Standards Act (FLSA) becomes effective today, March 11, 2024. This final rule was issued in January 2024, and now will go into effect. Last week, NAR met with officials at the U.S. Department of Labor’s Wage and Hour Division to discuss the recent rule and its impact on the real estate industry. The meeting focused on the rule’s adoption of the economic realities test, and how the test could impact how real estate professionals are classified. NAR also expressed concerns regarding the preemptive effect of the federal rule and how it may impact state worker classification laws.
NAR will continue to advocate on worker classification matters and to ensure that real estate professionals retain the ability to be classified as real estate professionals. NAR will continue to provide key updates regarding this matter.