Microsoft has gotten slammed in the past for this sort of thing by the IRS:

https://corporate.findlaw.com/human-resources/employee-or-in...

The IRS' concerns aren't exactly the same as the state law concerns, but the lists they use to qualify contractor versus employee seem pretty similar, just with the CA state law test being more simplified (though IANAL, the more simplified CA state law list seems no less likely for companies to run afoul of with this sort of relationship).

Why? Seems to violate 2 or 3 of the ABCs.

- dictate how job performed

- dictate when performed, on a very regular basis

- oftentimes work is identical to other teams members, only difference is pay structure