Common Law Employee Law and Legal Definition

A common law employee is any individual who, under common law, would have the status of an employee. A common law employee performs services for an employer who has the right to control and direct the results of the work and the way in which it is done.

In general, an employee not leased from an outside organization whose services, what is done and how it is done, are controlled by the employer. Even if the employer gives the employee freedom of action, that employee is still considered a common law employee.