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89 Notre Dame L. Rev. 661 (2013-2014)
Participating as a Theory of Employment

handle is hein.journals/tndl89 and id is 689 raw text is: PARTICIPATION AS A THEORY OF EMPLOYMENT
Matthew T. Bodie*
ABSTRACT
The concept of employment is an important legal category, not only for
labor and employment law, but also for intellectual property law, torts, crimi-
nal law, and tax. The right-to-control test has dominated the debate over the
definition of employee since its origins in the master-servant doctrine.
However, the test no longer represents our modern notion of what it means to
be an employee. This change has played itself out in research on the theory of
the firm, which has shifted from a model of control to a model of participa-
tion in a team production process. This Article uses the theory of the firm
literature to provide a new doctrinal definition for employee based on the
concept of participation rather than control. The participation test better
delineates the boundaries of employment and provides a framework for
addressing the stresses on firms and workers that are nfe within the modern
economy.
INTRODUCTION
The concept of employment plays an important role across the
legal landscape. Most obviously, labor and employment law protec-
tions provided under local, state, and federal law are limited to those
@ Matthew T. Bodie. Individuals and nonprofit institutions may reproduce and
distribute copies of this Article in any format at or below cost, for educational
purposes, so long as each copy identifies the author, provides a citation to the Notre
Dame Law Review, and includes this provision in the copyright notice.
*  Professor, Saint Louis University School of Law; Co-Reporter, Restatement
(Third) of Employment Law. This Article reflects my own views and not those of the
American Law Institute or my fellow reporters. Many thanks to the students in the
seminar Law and Theories of Employment at Notre Dame Law School in Fall 2012.
Their thoughts and insights provided significant contributions to this paper. Thanks
as well to Rick Garnett and the Notre Dame faculty for their feedback through their
workshop series, as well as to commentators at the 2013 American Law & Economics
Association, Law & Society Association, and Midwest Law and Economics Association
annual meetings. I am also much obliged to Guy Davidov, Matt Dimick, Cindy
Estlund, Michael Fischl, Tim Glynn, Rebecca Hollander-Blumoff, Brishen Rogers, and
Charlie Sullivan for their very helpful comments. And special thanks tojay Tidmarsh
for lending me volume 2 of the Restatement (Second) of Torts.

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