A 1099 person is not an employee. A 1099 person has the right everyday to decide if they want to work the next day or not. (And the "employer" has the right not to offer that person any more work.) There is a reason why there is a difference between a 1099 person and an employee. An employee gets certain benefits and obligations that a 1099 person does not.

Yes, the IRS would be very interested to hear if this is being treated in a different way.