An employer is a person or organization that pays people to work for them. When you have a job, your employer is whoever hired you and gives you your paycheck. A restaurant owner is the employer of the cooks and servers who work there. A hospital is the employer of its doctors and nurses. Even a kid who hires a friend to help with a lemonade stand becomes that friend's employer.

The relationship between an employer and their workers (called employees) involves money, working conditions, expectations, and fair treatment. Good employers provide safe working conditions, clear expectations about the job, and fair treatment. They might offer benefits like health insurance or paid vacation days. In return, employees agree to show up on time, work hard, and follow the employer's rules and instructions.

Understanding the employer-employee relationship helps explain how much of the working world operates: people trade their time and effort for payment from someone who needs their help getting work done.