What process do courts use to determine whether an individual is an employee or self-employed?

The process courts use to determine whether an individual is an employee or self-employed is known as Employment Status Determination. This involves evaluating various factors that indicate the nature of the working relationship between the individual and the employer. Courts typically consider multiple criteria, such as the level of control the employer has over the work performed, whether the worker provides their own tools and resources, and the degree of independence in the worker's ability to make decisions.

Employment Status Determination is essential because it impacts the rights and responsibilities of both parties involved, especially in areas like tax obligations, benefits entitlements, and legal protections. Clarifying whether an individual is classified as an employee or a self-employed contractor can significantly affect their legal rights and the obligations of the employer under labor laws.

The other options do not adequately encapsulate the comprehensive assessment process that courts utilize. For instance, a Self-Employment Assessment may be relevant but doesn’t encompass the full scope of legal considerations and factors that the courts examine. Similarly, Contract Review focuses on the terms outlined in an agreement, which might not reflect the actual working relationship dynamics. Lastly, while Employee Classification seems closely related, it typically refers to the decisions made post-determination, rather than the process through which courts reach that conclusion.