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