It won't kill it, but it will make it extremely unprofitable. It takes time for the law to catch up with this, but I'm certain this will this be ruled as an employer-employee relationship. The government looks very poorly on companies that try to exploit workers. It's why you can't work for a restaurant for no pay but all tips, the government won't allow it because they have to provide a minimum level of protection for workers from being exploited by employers.