JOURNAL ARTICLE

Redefining the Relationship: An Examination of the Independent Contractor Classification in Multi-Level Marketing Under the Department of Labor's 2024 Guidelines.

  • Published In: ABA Journal of Labor & Employment Law, 2025, v. 39, n. 1. P. 135 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Mosczcenski, Gwen 3 of 3

Abstract

The article focuses on the need to reclassify multi-level marketing (MLM) consultants as employees under the Department of Labor's (DOL) 2024 Final Rule, rather than as independent contractors. It outlines the operational structure of MLMs, highlighting how consultants are often misled into believing they can achieve financial independence while facing significant risks and losses. The analysis evaluates various factors, such as the degree of control exerted by MLMs, the nature of the work relationship, and the economic dependence of consultants on these companies, all of which suggest that consultants should be recognized as employees entitled to labor protections. The article argues that this reclassification is essential for safeguarding the rights and welfare of MLM consultants, who frequently find themselves in precarious financial situations due to the exploitative nature of the MLM business model. [Extracted from the article]

Additional Information

  • Source:ABA Journal of Labor & Employment Law. 2025/05, Vol. 39, Issue 1, p135
  • Document Type:Article
  • Subject Area:Marketing
  • Publication Date:2025
  • ISSN:2156-4809
  • Accession Number:189893987
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