>I'm like 10 years removed from BLaw 101, so don't listen to me, but I would think it would be legal so long as you sign a contract with them.

I believe there was a Comm Court ruling on a very similar issue within the past year that said something to the affect of "no, you cannot do that." The State Department of L&I could be contacted on this issue (I certainly would as it smells of a wage law violation).