Under federal common law, does attorney-client privilege extend to corporate employees?

In the context of federal common law, attorney-client privilege can indeed extend to corporate employees, but this extension is contingent upon certain conditions. It specifically applies to communications that are authorized by the corporation for the purpose of seeking legal advice. This means that if a communication involves an employee acting on behalf of the company and is made with the understanding that the communication is intended to obtain legal advice for the corporation, then that communication can be protected under the privilege.

For instance, if a corporate employee is engaging with the legal counsel during an investigation regarding compliance or operational standards, and this communication is conducted with the authority of the corporation, it qualifies under the attorney-client privilege. This aspect emphasizes the necessity of the communication’s relevance to the employee's role concerning legal advice.

Understanding this is essential because it highlights that not every communication by an employee to an attorney is automatically privileged. The communication must be made within the context of authorized legal advice for it to fall under the protective umbrella of attorney-client privilege. Hence, the correct answer reflects this principle.