Document, document, document everything, and report it to HR and the Labor boards, there is or should be a free legal service in your area that can tell you if you
bring them the paper work of your 'hiring on' whether you have a leg to
stand on, or if you are volunteer/employed at discretion of company. What your
boss (respected/ manager) is doing is illegal.
Use it to your advantage, but do it with tact and grace, your
HR will appreciate your grace and savvy and keep you on if you handle it
right. If you over react, the company may not be so forgiving.
YOU must have someone above you besides HR.
Check "Referenceusa.com" and Hoover.com and "Inside Prospects" to find out
who owns the company, how to reach them and where they are.
Tell the gate keeper (secretary) that it is a personal matter and when you
get the PRES on the phone tell them quickly what the issue is, your
documentation and that you will be "hard mailing him" (letter in mail)
in regards this issue. Tell him you wish everything to be happy with you and
company but you will not be party to questionable << practices.
CC (copy care of) this letter to the Labor board ( but don't send it)
until you get unsatisfactory response to your call with the Pres of company.

Much love and good luck.

Sandee.