what nullifies no-compete

I work as an appt setter from my home. I am paid hourly by a company that also reimburses me for my phone bill. The company I work for is adamant that I am an independent contractor. I signed a no-compete agreement that states I will not compete with the "Company" and in Client market or any other Transportation company for 2 years from time of separation from the company.
The "Company" that pays my checks has since Jan 2004 started billing me on a quarterly basis for "Services". This was done by the"company" to prove that we were independent contractors and not employees. It's supposed to satisfy IRS requirements. Several of the companies I make phone calls for have approached me about working for them directly, doing the same work as I now do for them.
When I bill for my services presently I send my invoice (with client's name) directly to the "company" that pays my checks. He then adds his compensation to our invoice and it is then passed on to client.
I've been told that since I am paying the "company" quarterly for services, that I am no longer an independent contractor but am now a client of the "company" and he provides a billing service. According to this person the above would nullify any no-compete agreement I signed.
The "Company" president resides in Massachussetts and I reside in a midwestern state.