[setha]

Wasn't there something in place that specifically (and unfavorably) handled this situation? That is, functionally acting as an employer while classifying them as contractor would mean certain trouble.

At the very least, it would be a lot harder (and maybe a lot more expensive) to legally work around that. Not impossible, just not as easy as making everyone a contractor.

[Ray76]

Joe’s BBQ contracts with WaitStaff, LLC and KitchenHelp, LLC. How WaitStaff and KitchenHelp are staffed are not Joe’s concern.