5. C.J.S. Apprentices §§ 2, 11; Employer–Employee Relationship §§ 2–3, 6–20, 34.]
economic realities test
economic-realities test. A method by which a court determines the true nature of a business transaction or situation by examining the totality of the commercial circumstances. • Courts often use this test to determine whether a person is an employee or an independent contractor. Factors include whether the alleged employer controls the details of the work and whether taxes are withheld from payments made to the worker. [Cases: Master and Servant 1,