What would you do? (Contractor or Employee Status)

[Kevin]

I think the ethical thing to do here, considering Djinn is already looking elsewhere and will likely land in that elsewhere soon, would be to take the contract money. Djinn might also explore the benefits of forming an LLC to be paid through and what additional tax advantages might apply to his situation as a contract employee. Those who remain will remember the way he graciously bowed out and perhaps that kindness will be repaid at some point.