A person hired to perform services for another under the direction and control of the other party, called the employer.

• A. Independent contractor
• B. Employer
• C. Agent
• D. Employee

Answer: (D)

The key idea is that control over how the work is done determines employment status. When a person is hired to perform services for someone else and the hiring party directs and controls the work—how, when, and where it’s done—that person is an employee. The party that hires and directs is the employer, and the worker who performs under that direction is the employee.

This differs from an independent contractor, who generally controls the methods and means of completing the work and is engaged to achieve a result rather than to perform under daily supervision. It also differs from an agent, who acts on behalf of a principal in transactions and authority, not simply as a supervised worker within an organization. In this scenario, because the worker is under direct direction and control, the relationship fits an employee status.