economic realities test

noun

economic re·al·i·ties test

Legal Definition of economic realities test

: a judicial method of determining the nature of a business transaction or situation especially : a test used by courts for the purpose of determining if a person is an employee by considering such things as the extent of the alleged employer's ability to control, hire, fire, and discipline the person, the nature of the person's duties, and the payment of wages

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Cite this Entry

“Economic realities test.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/economic%20realities%20test. Accessed 13 Jun. 2021.

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