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Comments
Go Office Space on that place... How Milton does it, not Peter and crew...
My, my stapler
Perhaps the business was going broke and this is the only way to keep it going and keep the staff. If not, get legal advice.
Here in Brazil we have laws that are very protective to the workers. Situations like yours are forbidden, it shouldn't happen here... but unfortunately we appear to be a people more concerned about the writing than the practice of our laws. Best wishes to you OP. Hard work and dedication can take you higher than one can imagine!
Check to see if you're entitled to have Unemployment pay a percentage of the difference in salaries.
Personal opinion? Keep looking for a job elsewhere and, since you know the company has zero loyalty for you, don't worry about things like two-week-notices, staying late, or doing anything beyond your basic job. Do what you have to so you can get that paycheck, and as soon as something better shows, give them your half-hour notice and vanish :) Best of luck!!!
Start looking for a job.
Keep your chin up, op.
Keywords
Don't worry :) just take it for now and look for new opportunities and then make a dramatic exit when you find a better place
Gotta do what you gotta do.