I don't know about the US, but over here if you have to follow orders, work under constant supervision or on the clock, you can't be classified as a contractor anymore (in theory).
They are working under the company's schedule, work guidelines and command. It's very subjective (for a layman), hopefully someone more versed in the area will clear this up.
Let's say they're getting $20/hr. Can they themselves hire someone else at $15/hr to deliver the service (or "assist them") and pocket the difference? No? Then they're probably an employee. Contractors are supposed to have profit/loss exposure.
