Independant Contractor Verses Employee?

This is a somewhat complicated two-part question. Actually three if you want to count them, but they all intertwine.

First, some background pertaining to the questions: I am a certified nursing assistant in Washington state. I was recently hired on as the regular weekend caregiver at a boarding home for developmentally disabled adults and during my training the home provider/owner told me that she pays all of her employees as "Independent Contractors/Self-employed", so it would be my responsibility to make sure to put money away for taxes and whatnot.

Question Number One: Does it make sense and is it legal in Washington state to hire someone as a regular employee and be their boss, dictate their set schedule, etc like a regular 9 to, 5, yet pay them as "Independent Contractors" or "Self-employed"?

Question Number Two: I asked her the difference between being a regular employee for her verses an "Independent Contractor/Self-employed" and working for her and she said that as an "Independent Contractor/Self-employed" I wouldn't need to have her permission to work a second job on my days off from working for her, and that a big difference between the two is that as an employee of someone other than myself I would not be allowed to, or could possibly even be sued, for accepting and working at another place on my days off from the first job.

So, is it illegal to hold down jobs at the same time and does an employer really have that much control over their employees? (And, before anyone asks; none of this is written in the employment agreement).

Thank you in advance!

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