My question involves independent contractors in the state of: WA and OR
Hi, I recently was hired by a man who represented himself to own a business based in WA state. He required me to sign an independent contractor agreement. Later I discovered that all the work I did for this man was probably illegal. His business was not registered to do business in WA. It was registered in OR however. We did no work in OR and two different jobs in WA. Based upon OR, WA and federal guidelines I think I can determine that the nature of my work was as an employee and not an independent contractor. The "boss" even said as much the day I signed the agreement - that we were going to be treated as employees and the I.C. agreement was to make tax time easier for all of us. I began to suspect this guy was not on the up-and-up and did some checking. I have found enough information and I am not going to work for this guy ever again. However, during the course of my employment we did two jobs which did not earn his company repeat business. Part of the fault may lie in his dishonest actions with the customer and part may lie on the side of myself and my supervisor. I have documentation to prove his partial fault. He is claiming that this "loss" of repeat business counts as a loss of revenue and is enforceable by an indemnity clause within my I.C. agreement. We caused no damage and did nothing beyond the work he showed us to do. They simply don't want us back. Now that it has come time to pay he has told me he will not pay and is perhaps considering sueing to recoup said "loss" (a crazy $118,000 considering both jobs total approx. $13000 in total revenue for him).
But I am wondering if the I.C. agreement is even binding since it can clearly be determined I was an employee and NOT and I.C.? I did sign it...at the time I trusted the guy. That is my fault. Now I need to know if this agreement will still be considered binding. I would appreciate any thoughts on the matter and am happy to provide points of clarity if needed.

