| 1700 : Definition of Employee |
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Memo 1700-1-2: Definition Of Employee
TABLE OF CONTENTS
DEFINITION OF EMPLOYEE
CATEGORIES OF EXCEPTIONS (NON-EMPLOYEES)
RELATED MEMOS/FORMS
| QUESTIONS |  | What is an employee? | | Is a formal agreement required for the employer-employee relationship? | | Does the method of paying for work determine whether a worker is an employee? | | What workers are not considered to be employees? | | Are an employers' family members employees if they help with the business? | | Do individuals become employees if a company allows but doesn't require them to work? | | View all questions for this Memo |
DEFINITION OF EMPLOYEE |
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State and federal laws regulating the pay, benefits, and other rights of workers generally apply only when there is an "employee" working for an "employer." So, in order to understand which laws apply to employers (both as a company and to employers personally), it is necessary to know the definition of both these terms.
Note: This Memo discusses the definition of "employee" for employment law purposes, as well as certain categories of non-employees. For information on the definition of "employer," read Memo 1680 Definition of Employer.
The definition of "employee" under state and federal wage and hour law is very broad and covers almost every person who works.1 So, the term employee means any person (including minors and aliens) who performs services that benefit another person or business, whether or not the work is done for pay.2
Example: Keith is an illegal alien who lives in this country. Keith volunteers to park cars at a restaurant in exchange for tips from customers. Although it's illegal for Keith to work and the restaurant is not paying him any money, Keith is an employee of the restaurant and the restaurant is responsible for complying with wage and hour laws.3
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