Just to add some actual cases, there was the $6.5 million settlement by Lowe’s Home Centers as well as a FedEx Ground case, where the idea of "1099ing an LLC" did not protect them.
"Recently, the U.S. Court of Appeals for the Ninth Circuit and the Kansas Supreme Court both held that FedEx Ground had misclassified employees as independent contractors who were operating as business entities or subcontracted additional routes to other drivers."
"Recently, the U.S. Court of Appeals for the Ninth Circuit and the Kansas Supreme Court both held that FedEx Ground had misclassified employees as independent contractors who were operating as business entities or subcontracted additional routes to other drivers."
http://independentcontractorcompliance.com/2015/01/14/four-l...