What is the difference between an agent and an employee?

The main difference between an agent and an employee is how they are compensated. An agent is an independent contractor, meaning they are paid for each job they complete rather than receiving a regular salary or wages. An employee, on the other hand, is a person who works for an employer in exchange for a salary or wages. In New Jersey, the difference between an agent and an employee is outlined in the New Jersey Compensation & Benefits Laws. An agent typically has more freedom than an employee. Agents typically work on their own schedule and are not responsible to their employer for the completion of their work. For example, an independent real estate agent would be responsible for the success of her own transactions rather than having to answer to a supervisor. An agent may also be compensated in a different way than an employee. An agent may be paid a commission on each sale or transaction, while an employee is typically paid an hourly wage or a salary. In contrast, an employee is considered an employee of an employer. Employees, in general, must complete their work in accordance with the expectations of their employer. An employee is expected to abide by the rules of the employer and may be subject to disciplinary action for failure to do so. Additionally, an employee is typically paid a salary or an hourly wage, rather than a commission or other form of payment. Ultimately, the difference between an agent and an employee comes down to the relationship between the two. An agent is an independent contractor while an employee must abide by the expectations of their employer and is generally paid a salary or an hourly wage.

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