Was it legal for my employer to swtich me to 1099?

I have worked for this company for more than 10 years. In the past 2 years there were many changes in how the business was run, including change of ownership. Originally I worked in Denver, but was relocated to Las Vegas about 6 years ago. In 2008 the Las Vegas location was closed and the company partnered with a company in Kansas. I was able to continue working from my home, performing the exact same duties as I had all along, but I was now employed by the partnering company. I took a $5000/yr pay cut due to the fact I was working from home. A year later in November 2009 the partnership ended between the two companies and I continued to perform the same duties, only now I assumed I was again an employee of the original company. My paychecks continued at the same rate (although all benefits had been cut during the time I was employed by the partnering company), only no taxes were being taken out. I assumed this was just temporary until they provided me with the paperwork to fill out. I was informed 2 days ago that I was now being considered an independent contractor and I would have to take a 22% pay cut. The original company I worked for came under new ownership in 2009 and at the time of the sale I was employed by the partnering company so my position was not listed as an asset. What rights, if any do I have here?