On the other hand, your company can't afford to treat employees it would like to keep in this manner. Thus you should assume they want you to resign. Moreover, it would appear that you could collect at least HALF of the money owed you by going to small claims court. I would consider that avenue unless you would rather go into court with a lawyer on contingency with a 30-40% loss of your income anyway. Time is of the essence. Go to small claims court with your income documents and show the judge what your company is trying to do.

I'd bet that they don't want to fire you because you could collect unemployment. Seems your company is probably in the red.

Also seems to be a pitifully ugly way for the owner to try to solve his problems. Lacks ethics.

OBTW. I believe you can contact the state about salary not paid. There is a limited time between work and payment... sounds like he is just about to break THAT barrier. What state are you employed in?

I just noticed how old this is. If you didn't get your pay, you can still go to small claims court. Do it.