If an employer treats you like an employee, and simply uses the 1099 as a benefit/tax dodge, you have options. Last I checked, such employees are able to go to the IRS and have the employer pay their taxes. So that's a risky thing to do as an employer.
Look up IRS 20 questions for details. But in general, if you can't hire people to do your work, and you lack freedom in how you accomplish tasks, then you're probably not a contractor.
Of course, in reality, there are probably people that'll just go along with whatever just to have a job