Information: Two other legal relationships overlap with agency: employer-employee and principal-independent contractor. In the employment relationship (historically referred to as the master-servant relationship), for the purposes of vicarious liability discussed in the next chapter, an employee is an agent whose principal controls or has the right to control the manner and means of the agent's performance of work. Restatement, Section 7.07(3). All employees are agents, even those employees not authorized to contract on behalf of the employer or otherwise to conduct business with third parties. Although all employees are agents, not all agents are employees. Agents who are not employees are generally referred to as independent contractors. (The Third Restatement does not use this term.) In these cases, although the principal has the right of control over the agent, the principal does not control the manner and means of the agent's performance.

A principal owes to any agent the same duties under tort law that the principal owes to all parties. This duty requires that the principal provide the agent with information about risks of physical harm or monetary loss that the principal knows, has reason to know, or should know are present in the agent's work but are unknown to the agent. Restatement, Section 8.15. In cases in which the agent is an employee, the principal owes the agent additional duties. Among these is the duty to provide reasonably safe conditions of employment and to warn the employee of any unreasonable risk involved in the employment. A negligent employer is also liable to her employees for injury caused by the negligence of other employees and of other agents doing work for her.

Question: Discuss an employer/employee agency relationship and the potential legal actions each may have against the other or a third party.