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Permanent to contractor

Is this legal, what are my options

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Have been working for a company for over 8 years and just found out they "opened a new company" and everyone in our department will be moved over as full time contractors. We will still receive the w2 as contractors and there are benefits but not all that are available now.

I am sure that they wouldn't do this without having the appropriate reasons ready to throw out so it wouldn't be an illegal thing. However I feel my stability and loss of available benefits show some sort of unfairness since the whole company is not being moved to this.

I spend 5 hours driving to and from work because I like having stability with any company I work for. If I am going to be moved to over to be a contractor I might as well be a contractor closer to home.

Apparently they can do it, since the process has started. What can I do to keep this from happening or if I refuse to be moved over. 

 

 

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