BUS 393 Chapter Notes - Chapter 10: Absenteeism, Equal Pay For Equal Work, Parental Leave

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Identify the distinctions among employees, agents, and independent contractors. Agency is a third type of business relationship, in which one person acts as a go-between in relationships between others. Employment involves one person doing work for another. Degree of control exercised over an employee is greater than over an independent contractor. A person who is told not only what to do but also how to do it is classed as an employee. But if the person doing the work is free to decide how the job should be down, the person is more like an independent contractor. Whether the person is paid a wage or salary, or is paid by the job, is also taken into consideration in determining if an employment relationship exists. Courts will also look at who owns the tools used and who profits or runs the risk of loss from the work performed.

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