Legal Question in Employment Law in California

If your employer can legally contract out your job to you as an independent contractor, there is nothing you can do. They have the right to fire you as an employee and hire you back as a contractor and you are free to refuse to be a contractor and not accept the new job. I'm not sure if you could collect unemployment in that case but you might, since you would technically be being fired, not quitting. They are also free to decrease your salary as long as they pay minimum wage, and overtime if applicable. If your job is not one that can be done within the legal standards for a contractor rather than an employee, then what your employer is doing is illegal. Without sitting down with you and going over your job and work environment in detail, there is no way to determine whether your job is one that can be contracted or by it's nature makes you an employee. It is not the job title, but rather the terms and conditions under which the work is done that makes a job an employee job or one that can be contracted.

I agree with Mr. McCormick but would add that if the employer merely switches you from an employee to an independent contractor without modifying the your job in such a way that you are clearly independent, which means among other things, he cannot control the way you do your job, the hours you work, etc. he is probably misclassifying you as an independent contractor.

If he does it correctly, your only choice is to go along with it or choose not to work there anymore. If it were me, I would try it for now, if for no other reason, to keep the job. After you have an opportunity to see how the new arrangement works, consult with an employment law attorney to get a legal opinion as to whether the relationship is that of an employee or independent contractor (it does not matter if you signed anything, the law dictates this, not a written agreement) and discuss any legal options you may have.