A more thorough explanation:

Subject-matter test is a way to determine if an employee's communication with a company's lawyer was made under the direction of the employee's supervisors and within the scope of their job. This is important because it can protect the communication under attorney-client privilege, even if the employee is not part of the company's control group.

For example, if an employee of a company contacts the company's lawyer to discuss a work-related issue, the subject-matter test can be used to determine if the communication is protected under attorney-client privilege. If it is found that the communication was made at the direction of the employee's supervisors and within the scope of their job, then it can be protected.

The subject-matter test is often used in legal cases to determine if certain communications are protected under attorney-client privilege. It helps to ensure that employees can communicate freely with their company's lawyers without fear of their communication being used against them.