The problem is that companies, Amazon and their contractors in particular, have been able to mischaracterize employees as "contractors" in order to get around minimum wage laws.

It's the lax enforcement of 1099 mischaracterization that has allowed the "gig economy" shit-sandwich jobs to proliferate. A deliver driver who has to maintain a delivery schedule or meet delivery deadlines given by Amazon (and in likelihood follows a programmed route given to them by an Amazon routing system) is in no real sense an INDEPENDENT contractor in the way that definition was originally meant.

Contractors are exempt from minimum wage laws because otherwise there would be a catch-22 situation if, say, a plumber you hired mis-estimated the amount of work involved in a job. (If he gave you an estimate that a job would be $100, and it turned out to take 10 hours plus $50 in materials, he could very well end up making below minimum wage. But he can't go back and squeeze you for more money; he's the one who gave you the estimate! But it hardly makes sense to penalize him again for not paying himself enough.) But these exceptions envisioned bona fide independent contractors, mostly skilled tradespeople, and not today's largely-unskilled and entry-level "contract" jobs.

You could call it progress though. And it is an example in which both regulation is needed and can be achieved somewhat.