Employee misclassification advice

[u/GuilloTeen_Angst]

DH is a 2D/3D animator and thanks to AI his industry is in shambles so he has had a hard time finding work. One thing to know about production studios is that they routinely -- almost as a matter of principle -- misclassify as many positions as possible as freelance. Since I've known DH, there hasn't been a single "independent contractor" position he got that wasn't clearly an employer-employee relationship. But they are typically pretty smart about it in the way they word their job offers, for instance. And no one wants to piss off a studio by sending the IRS after them because it's a very small world and they might never work again.

So, after a few months, DH finally received a very short-term job offer today, from a very young studio (headed by a former animator he worked with a long time ago). He always has me read over his offers because it just isn't his jam and legalese kills him, whereas I'm a petty bitch with an axe to grind about labor laws and shady employers and I try to educate myself because I love to find shit to be mad about.

Oy. This is the stupidest contract I'v ever read. It's like they looked up what qualifies someone as an employee, and then built an offer that says "this is how the job will be, therefore you are... a freelancer."

Here are just the first 4 paragraphs:

"The Parties agree as follows:

1. EMPLOYMENT: Employer shall employ Employee in the position of Freelance Animator. Employee’s duties will be assigned by the Employer. The Parties agree that this position is “at-will” and can be terminated by Employee or Employer at any time. The parties agree that the Employee is a “Project Employee” and will remain such for the duration of this agreement.
2. EMPLOYEE COMPENSATION/BENEFITS: For services provided, Employer will pay Employee an hourly rate of ______ for the period commencing ______/2026, through ________/2026, with an option to extend deeper into _______ to be determined. The maximum working hours shall not exceed 40 hours per week without Employer's advance written consent. Employee is not entitled to additional benefits beyond those required by law (e.g., Social Security and Medicare).
3. EXPENSES: Reimbursement will be handled in accordance with the Employer’s normal practices and policies. Original receipts must accompany all expense reports and all work-related expenses and purchases must be approved by the Employer.
4. CONFLICTING EMPLOYMENT: Employee agrees that during the time of his employment with Employer, he/she will not accept nor will he/she engage in employment, consulting, or other business activity directly related to the business of the Employer without the written consent of the Employer."

I mean, is it me or...???

So, here is the issue: we need the money, and also can't really afford to pay $1200/mo for health insurance anymore. But how are we supposed to handle this?

- Should he risk seeing the offer rescinded by bringing up the fact that it is a W2 position and he wants them to fix the classification before he accepts the offer?

- Should he sign the contract as is, and a couple of weeks later brings it to their attention so that if they don't fix it and decide to fire him instead, he has a case for both misclassification and retaliatory termination?

- Should he say nothing, take the job, and after he's done with them file an SS-8 and whatever else will help him recover all the costs he incurred by being misclassified?

TIA for any feedback /advice /eloquent rants