Employer Law and Legal Definition

An employer is a person or entity who hires another to performs service under an express or implied agreement and has control, or the right to control, over the manner and means of performing the services. An employer has the right to control an employee.

It is important to determine whether the company had the right to direct and control the workers not only as to the results desired, but also as to the details, manner and means by which the results were accomplished. If the company had the right to supervise and control such details of the work peformed, and the manner and means by which the results were to be accomplished, an employer-employee relationship would be indicated. On the other hand, the absence of supervision and control by the company would support a finding that the workers were independent contractors and not employees. Whether or not such control was exercised is not the determining factor, it is the right to control which is key. Other factors indicating an employee-employer relationship include payment of compensation on an hourly, salary, or commission basis, the employer's maintainence of a place of business and supplying of tools and equipment, an indefinite time period for completion of services, and others.