I heard on the radio that a wholesaler just laid off all its sales employees, who have benefits and company vehicles, and replaced them with commission-only sales reps who use their own cars. Isn't this asking for a lawsuit or fine?

I don't think it's illegal to outsource their sales group.

 

If what they did was take their existing employees and convert them into contractors, that could be more difficult because it can be made to look like a play at dodging FLSA.