You can but they're cracking down on it and fines are steep. California recently passed a really unfriendly and strict law because delivery type businesses abus

You can but they're cracking down on it and fines are steep. California recently passed a really unfriendly and strict law because delivery type businesses abused the 1099 option [1]. Now if you run a service based business (say app development) but outsource/1099 something like design but you are building an app - does graphic design fall under the B test ("that the worker performs work that is outside the usual course of the hiring entity’s business")? Is design outside of your usual course of business? Or does it count because your app needs design? It's really a grey area but you can see how that B rule is really open to interpretation. We've had labor law litigators tell us to basically stop doing 1099 at all. I started doing part time hourly instead for new hires. And hiring people that live outside California including other countries. I don't think this will work out well for most people - they'll get part time work or hourly with limited benefits and many will be pushed to work for a staffing firm. [1] https://www.wagehourblog.com/2018/04/articles/california-wage-hour-law/california-supreme-court-adopts-abc-test-for-independent-contractors/ https://www.wagehourblog.com/2018/04/articles/california-wag...