boss changing contract after returning from workers comp

Here is what im dealing with I joined my business up with this company this last July. I was given a contract pay of 50k a year company truck and the option to rent a house. I got hurt on the job 4 weeks ago, I went to the doc office and found out I had a umbilical hernia after getting into a yelling match (at the doc office) with my boss about why I'm not putting this on my personal insurance I able to finally get the workers comp insurance name from him. After filing workers comp I was told me there was no way I would be able to afford the house and asked me and my family of 6 to move out. We did Today I got the go ahead to return to work and after emailing my boss telling him I able to return I was emailed back saying my position has been filled and upon returning I will be given a new job paying 8 a hour Can he do this??? I was contracted at 50k a year? how can he drop me all the way down to 8 a hour? He is saying I was not working up to my potential and that’s why my position was filled. Right before Christmas, I cant believe this. My only option now is to buy all my stuff back and go out on my own and try and get unemployment if I can get that… can I get that? I have not even emailed or called him back