What does the term "de facto employer" refer to in a working relationship?

The term "de facto employer" refers to a situation where an employer treats independent contractors as though they are employees. In this context, the distinction between independent contractors and employees becomes blurred, as the employer may exercise a significant level of control over the contractors' work, similar to that of formal employees. This scenario can give rise to various legal implications, such as liability for worker benefits, obligations, and protections typically afforded to employees.

Treating independent contractors as employees can result in issues concerning worker classification, tax responsibilities, and compliance with labor laws, which are designed to protect employees. As such, understanding this concept is crucial for businesses to ensure they are meeting their legal obligations and properly classifying their workforce.

In contrast, the other answer choices reflect different relationships or obligations that do not align with the specific characteristics of a de facto employer. For instance, providing benefits only to full-time workers, being identified legally by contract, or operating in compliance with legal obligations do not encapsulate the essence of treating independent contractors in the manner described.