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I'm not sure about that. I think I'd go talk to an attorney or someone at the employment office. And I would start looking for another job immediately while you have this one so you can find something better with a nicer boss.
Keep looking for something better whilst working there. I hope you find something! Good luck OP!
Chances are you're not the only one. Just accept and look for a new job in the meantime. It's better than unemployment. Many people would prefer that instead of nothing.
I see your Mr. Burns and raise you another Matt Groening character: "Severely reduced pay all around!"
Use this new paid time frame to look for a job the you deserve
No doubt this was a sneaky way to give you a huge pay cut. And I see why you accepted it. So take the job and look for a new one while earning the pittance from your old one. But don't burn any bridges when you go. Give the standard two-week notice and show you are classier than your goniff of a boss.
Take what you can get and look around for something better
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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.