The National Association of Realtors (NAR) is backing a proposed federal rule that redefines if a worker is classified as an independent contractor or an employee.
In a letter to the Department of Labor, NAR 2026 President Kevin Brown voiced his support for the Notice of Proposed Rulemaking on the “Employee or Independent Contractor Status Under the Fair Labor Standards Act.”
“Protecting and advancing independent contractor status is a key priority for NAR and its members,” wrote Brown, who observed that many people are attracted to the real estate industry “for its flexibility, autonomy, and predictability, including the ability to set their own schedules and manage client relationships. Most real estate professionals elect to operate as independent contractors that work with brokers who provide oversight and guidance, particularly for newer professionals. While classification decisions are made jointly, a professional’s success largely depends on their own business judgment, reflecting significant economic independence.”
Brown added, “NAR supports clear, consistent, and pragmatic regulations that provide predictability and ease compliance for the many real estate professionals who are small business owners. By contrast, overly broad or burdensome regulations create challenges for both businesses and consumers.”
However, Brown recommended a revision of how federal tax law views real estate professionals.
“The Internal Revenue Code recognizes the treatment of qualified real estate agents as non-employees,” he wrote. “The Department of Labor should consider providing an exemption for the treatment of real estate professionals in a final Independent Contractor rule.”
Brown noted that real estate professionals are viewed as “non-statutory non-employees” if they are licensed and if nearly all payments must either be directly tied to their sales or to other services performed “pursuant to an agreement that states the real estate agent will not be treated as an employee for federal tax purposes.” He called for “consistency for the treatment of real estate professionals across the tax code and labor regulation is essential, given the uniqueness of the real estate industry.”
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