I agree that the labor laws have an "impedance mismatch" with the on-the-ground reality and I tried to spell out what that was in another comment [1]. Basically, laws shouldn't be discontinuous like this -- where all the rules sharply change when you just 50.001% look like a contractor (or the opposite). It should be more like "as you start to look more like an employee, you must adhere to more of a certain requirement".

Don't know why you're getting voted down so hard.

[1] https://news.ycombinator.com/item?id=10717768