The business environment is changing. Small and mid size companies are trying to deal with the ACA. The magic number is 50. The emerging tendancy now is to have a core set of employees and contract everything else. The mid-size companies are setting up the employees as LLC corporations. It allows them to have business contracts which aren't subject to the ACA since it is corporation to corporation business. This puts more responsibility on the worker. They have to get their own insurance and take care of their own taxes. A good company will take care of that for their contractors but is not necessay for them. There is also the possibilty that they will not pick up your contract again. The proceeding is just how bussiness is forming.
What seems to me, is that you have run headlong into a good ole boy/girl network. These can cause all kind a grief for everybody. If your company has a HR department, I would start there. HR has the ability to override most management when it comes to dicrimination. Don't go to work dressed as this only gives them fuel for their fire.
