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An employee is an individual employed under a contract of employment A worker who is not an employee works under a contract whereby the individual undertakes to do or perform personally any work or services for another party to the contract whose status is not that of a client or customer s.

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While contract employees make a higher wage than full-time employees in the same role contract workers are not eligible for any benefits from their employer This can mean forgoing health insurance 401k contributions paid time-off parental leave disability benefits and more.

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