Is an associate an employee?

Yes, an associate is an employee. Beyond that, though, an associate can mean almost anything. Different industries use this title differently, and it is often attached to another job title. For example, an associate manager is a very different type of employee than a sales associate.

An associate is often a term used to denote low rank or lack of seniority. For example, an associate director would rank below a director. An associate director would also certainly rank below a senior-level director, such as an executive director.