A common-law employee is an individual who is hired by an employer and is subject to the employer’s control and direction in terms of the work they perform, the hours they work, and the tools and equipment they use. This type of employee is distinguished from an independent contractor, who is self-employed and has more control over their work. The term “common-law” refers to the legal system in which the employer-employee relationship is established through a series of court decisions and precedents, rather than through a written contract. Common-law employees are entitled to certain benefits and protections under employment laws, such as minimum wage, overtime pay, and workers’ compensation. They are also subject to payroll taxes and may receive benefits such as health insurance and retirement plans from their employer. The determination of whether an individual is a common-law employee is based on various factors, including the degree of control the employer has over the individual’s work and the level of independence the individual has in performing their job duties.
