JDSUPRA reports “Independent contractor misclassification” is a phrase that is misunderstood, misapplied, and misused – constantly. It is used to cover an array of disparate forms of IC misclassification: unpardonable; uninformed; unprepared; unintentional; and unjust. 
The phrase is used to cover companies that engage in indefensible and unpardonable conduct, such as when a construction worker, custodian, or restaurant worker is paid in cash under the table or when a company knowingly pays an administrative assistant on a 1099 basis.
But the same term is also applied in a few states to de-legitimize IC relationships that are lawful under the laws in almost all other states and under all federal laws governing ICs. When used in that latter context, such as where ICs have some of their own customers but also choose to supplement their income by using a referral company that sends them additional customers seeking the types of services they provide, the phrase “IC misclassification” can justly be regarded as legally unjust to both independent contractors and businesses.
Read more about the “Five Degrees of IC Misclassification” here.