That is likely not legal in the US. An independent contractor needs to be "independent" for the most part. If they work 40 hours a week, 50 weeks a year, for the same company they are considered an employee and can't be given a 1099. They should be a W-2 type employee. Now if the company wants to hire another company to be the legal employer of the employee they can do that. But still need to be a W-2 employee.
Not to say that people/companies don't do it, but the companies that do are leaving themselves open to legal issues.
> If they work 40 hours a week, 50 weeks a year, for the same company they are considered an employee and can't be given a 1099
IANAL but this is not the legal framework for determining whether someone is a 1099 resource. There are plenty of people who work 40 hours a week, 50 weeks a year for the same company and are still legally considered IC's.
Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?
Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)
Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?
Not to say that people/companies don't do it, but the companies that do are leaving themselves open to legal issues.