Gordy, I'm sure most of guys have gone through this, and without wanting to sound patronizing your best bet is a sharp exit and work for an employer who gives a damn... or at least is profitable and doesn't pull stunts like that.

Its August now, you could be well into a new job when the baby arrives. Sure a bit of tax free cash might sound good, but you don't need the stress, 'cuz it could drag on for ages... thats my 2centavos