ADDED: As others have noted, there are probably legal issues with that entity effectively acting a full-time employee. And, of course, the entity doing the work can't get any employee benefits.
I'm not a lawyer but I think they're taking a serious risk.
I mean it seems like a ridiculous way of getting work done, but fundamentally possible.
What could work is a middle man (ala upwork), but then you'd have to accept the middle man knowing you.