HR3495, which reclassifies direct sellers and real estate agents as non-employees under the FLSA, is on the Union Calendar and set for a House floor vote. EXPI, HLF, and USNA, which operate 1099-independent contractor models, would see elimination of employer-side payroll taxes and removal of FLSA misclassification litigation risk. The three stocks show mixed recent price action but 30-day upward momentum reflecting increasing legislative probability.
→ Elimination of employer-side Social Security, Medicare, and unemployment payroll tax obligations (~7.65% FICA plus FUTA) for each agent classified as non-employee; removal of overtime and minimum wage FLSA litigation risk for past and future agent relationships
HR3495