Comment It IS FRAUD (Score 2) 165
With luck you could make a fortune. Any time a business claims a person is an independent contractor numerous state and federal agencies are defrauded. Workman's Compensation can not charge the usual fees. Unemployment is also defrauded. Programs such as food stamps and welfare suffer losses and others I probably have not thought of. For example the supposed contractor will take all kinds of illegal deductions from his taxes. The fraud it enables is endless. In theory the various agencies could enforce existing laws and you would get a substantial living just on turning in the companies that violate the law.
But here is the sad and demonstrable fact. Businesses who get caught get very mild punishments. The actual punishments are so few and so cheap that the businesses keep right on with the violations. Compare it with companies that make huge sums defrauding the public. They steal a billion bucks and are ordered to pay back only one hundred million. The message is loud and clear. Business is above the law and above the government.
In my area the great offender is the phone sales and telemarketing racket. I could easily catch and turn in three companies every day of the week except Sunday. Almost none of these employees are in fact contractors. And pretty much every phone call they make is criminal. But make note that the government rarely shuts them down and when they do the punishments are so minor that they open up right away a few blocks down the street. American business is pretty much a criminal conspiracy and nothing more than that.