NAR Comments on Proposed Independent Contractor Rule

NAR recently submitted a comment letterpdf in support of the new proposed independent contractor rule issued by the United States Department of Labor. In February 2026, the U.S. Department of Labor issued a new Notice of Proposed Rule (NPR) for how workers should be classified under the Fair Labor Standards Act (FLSA). 

The new rule adopts an economic reality test, which includes a five-factor test or analysis for how workers should be classified under the FLSA. The rule proposes that two of the five factors would be core factors for determining a worker’s classification. The key determinative factors would be “the nature and degree of control over the work” and “the worker’s opportunity for profit or loss.” The proposed rule is more favorable and offers a framework that is more predictable and consistent for the industry to follow. In its comment letter, NAR also encouraged the Labor Department to consider providing an exemption for real estate professionals under the law to ensure that federal labor laws are consistent with the treatment of real estate professionals for tax law purposes.

NAR values and prioritizes worker classification matters and will continue to advocate in support of practitioners. Additionally, NAR will continue to provide updates regarding independent contractor matters.