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Economic Realities Test

economic realities test n

: a judicial method of determining the nature of a business transaction or situation
;esp
: 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


Source: Merriam-Webster's Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.