In an effort to cheat the system and get around FLSA and EEOC laws, many employers try to classify their permanent employees as contractors. Most employers who engage in this shady tactic do so just to save money. Their goal is to avoid fulfilling obligations to employees, such as the following.
Minimum wage
Overtime pay
Freedom from discrimination
Adhering to hour laws
Allowing union organizing
Offering benefits and pensions
What’s more, is that many employers hire immigrant workers as contractors in order to pay them as little as possible. This is an extremely exploitative practice, and those workers deserve fair pay for their hard work.