I've been leaning toward employee also and the company details confirm it. Your employer controls what you do and how you do it. That's a big part of it. That you have been working for them for 7 years and they employ many masseurs just like you is also part of the criteria. You're paid by the hour and had no choice but to accept a 20% reduction in pay. That also says employee. So does the non-compete.

This appears to be another cheater that uses the independent contractor dodge to avoid payroll taxes and workers comp insurance.