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In this case specifically, the description of how the company dealt with Lupe raises serious questions.

Honest question: what is legally wrong with it? If people show up late, you are allowed to remove them from your network. I don't see anything at http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employ... that indicates paying attention to the time when work is done disqualifies one from being a contractor.



Right on the page you cited, it says:

"You are not an independent contractor if you perform services that can be controlled by an employer (what will be done and how it will be done)."

Enforcing specific working hours is definitely controlling how a job will be done.




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