Yea, the definition of contractor that often gets thrown around in these discussions seems to exclude most real world contractors. I’ve worked as a construction contractor and a software contractor, and I did not get to set my hours in either one. It seems like the legal system is out of touch with the world of business.
The real definition of a contractor may be “an employment relationship in which the worker does not want to assert employee rights”. In my case I did not want to be an employee because contractors got paid more for the same work, and I liked taking time off between gigs.