The biggest difference in the US is that "treated like an employee" also means being paid a minimum wage. As an employee in the United States, your employer is

The biggest difference in the US is that "treated like an employee" also means being paid a minimum wage. As an employee in the United States, your employer is also responsible for paying a portion of your social security and medicare taxes, and for making sure taxes are properly withheld from your paycheck. Even before the gig economy became a big deal, businesses like yoga studios would attempt to classify their skilled teachers as independent contractors so they could pay them well below minimum wage, but take away their ability to teach at the location if they taught somewhere else as well. Hair salons and yoga studios sometimes go so far as to charge their independent contractors rent, which would make sense if these people were truly renting the space and could freely take their clients elsewhere, but these businesses also frequently limit the contractors' ability to collect personal contact information. When I volunteered to help people with their taxes, a large number of Uber/Lyft/DoorDash/etc. drivers were surprised to learn that not only did they have to pay large amounts of income tax that would usually be automatically deducted from their pay check, but they also had to pay double the social security and medicare taxes because they had to pay the employer and the employee portions. Companies that classify their workers as independent contractors in this way are taking advantage of the fact it can take people up to a year to realize that taxes and car maintenance will take what little income they have made.