Since she was explaining what her friends do, I assumed she was interested in doing the same. Originally Posted by S-ManI meant that I see nothing where it is implied that an "employer" would be expected to do anything other than comply with IRS regulations.
What anyone does outside of "regular employer -- employee" relationships" such as off the clock self-employment opportunities would be the responsibility of the individual. If their "clients" reported their dispersements (via 1099), the IRS would be notified of the income. Reporting of other "non-1099" income is still the responsibility of the individual, but difficult for the IRS to track.