Your question is whether the "ineligibility" is legal, and there is nothing illegal about it, so long as it is not based upon a protected classification like, race/ethnicity/ancestry, sex, age (40+), Family Medical Leave Act usage, and the like.
Some companies may want to avoid former contractors or employees because of concerns about status for purposes of retirement eligibility, benefits, and the like. You need to find out more about why the marked you as "ineligible."
www.bayoaklaw.com. 510-208-5500. This answer does not create an attorney-client relationship. It is not legal advice, because it is only of a general nature. Please contact a lawyer qualified in your jurisdiction to discuss your situation in confidence, using your factual details. Avvo answers are only general legal responses. Item 9 of Avvo.com's Terms and Conditions are incorporated in this disclaimer as though it were printed here.
Why did you think you might be fired?
My answering this question does not form an attorney-client relationship. Always retain a qualified attorney before taking any action. My office offers free consultations. www.jrandolphlaw.com