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Definition of Employee

An employee is a person who engages in work activities for an entity or an individual. Most individuals who provide services to a for-profit business are regarded as an employee of that business. An employer is a person, contractor, firm, corporation, or other organization or association that employs individuals for payment. An employer is the entity or person who pays you for doing the work activities that they direct you to do.

In regard to workers' compensation, the term employee generally includes leased employees, part-time employees, day labor, borrowed employees, unpaid volunteers (including family members) and a majority of subcontractors. In many instances, an employer will say that someone is an independent contractor rather than an employee so that they will not have to pay workers' compensation premiums on that person or be responsible to provide workers' compensation benefits for that individual, when, according to workers' compensation laws, that person is regarded as an employee.

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