I've worked as an employee and as a contractor in Silicon Valley (never at Google). While it was nice to be treated like an employee by some companies, my attitude was that it's just understood that as a contractor I'm not as much a member of the team as the employees are, and I'm the first to be let go if the money gets tight. Those were the tradeoffs of the flexibility I got. If contractors are the same as employees, why even have a distinction?