What is the legal definition of “employee”?

The legal definition of an "employee" is best captured by the notion of an individual hired by an employer to perform services for compensation. This definition highlights the critical elements that distinguish employees from other types of workers. First, the relationship between the individual and the employer is formalized through a hiring process, which usually includes an employment agreement. Second, the expectation of compensation establishes a contract-like relationship, differentiating employees from those who may provide services on a voluntary basis or without financial remuneration.

In this context, understanding the employer-employee relationship is crucial for various legal protections and obligations, such as compliance with wage and hour laws, benefits entitlements, and workers' rights. This legal classification impacts various employment laws and regulations, ensuring that employees have specific rights and protections under the law that do not typically apply to independent contractors or volunteers.