Business Associations


An employee is an agent whose principal controls or has the right to control the manner and means of his performance or work. R3A § 7.07(3)(a).


Numerous factual indicia are relevant to whether an agent is an employee. These include:

  • the extent of control that the agent and the principal have agreed the principal may exercise over details of the work;
  • whether the agent is engaged in a distinct occupation or business;
  • whether the type of work done by the agent is customarily done under a principal's direction or without supervision;
  • the skill required in the agent's occupation; whether the agent or the principal supplies the tools and other instrumentalities required for the work and the place in which to perform it;
  • the length of time during which the agent is engaged by a principal;
  • whether the agent is paid by the job or by the time worked; whether the agent's work is part of the principal's regular business;
  • whether the principal and the agent believe that they are creating an employment relationship;
  • and whether the principal is or is not in business.

Also relevant is the extent of control that the principal has exercised in practice over the details of the agent's work.

R3A § 7.07.