What is Employment Status? | Meaning & Definition | Akrivia HCM

Employment status is the relationship between an employee and their current or former employer. Under U.S. law, employment status affects eligibility for benefits such as unemployment insurance, tax data collection obligations, rules regarding taxation of fringe benefits provided by the employer, and whether employees are covered under labor laws, wage and hour regulations, and civil rights legislation. Employees can possess multiple employment statuses simultaneously. For example, an employee who works part-time may also be a volunteer at the same organization but be paid by an outside entity: a volunteer in this context would be considered an unpaid “employee” of the organization they volunteer for.

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