You did not ask a question so I don’t know what it is that you are looking for in response to your post. If the question is whether the employer terminating you because your pay was too high is illegal the answer to that is no. The employer does not have to have a good reason to fire you. All that matters is that the reason is not among the relatively few things that the laws says the employer cannot have as a reason for firing you. The prohibited reasons include firing you because:
  • of your race, color, religion, sex, national origin, citizenship, age, disability, or genetic test information under federal law (some states/localities add a few more categories like sexual orientation);
  • you make certain kinds of reports about the employer to the government or in limited circumstances to specified persons in the employing company itself (known as whistle-blower protection laws);
  • you participate in union organizing activities;
  • you use a right or benefit the law guarantees you (e.g. using leave under FMLA);
  • you filed a bankruptcy petition;
  • your pay was garnished by a single creditor; and
  • you took time off work to attend jury duty (in most states).

The exact list of prohibited reasons will vary by state. Since firing you because your pay is too high is not on that list, the employer is free to fire you for that reason.

If I was your employer and thought your pay was too high, I’d first approach you about cutting it and tell you that if you don’t agree to the cut you’ll be fired. Then at least I have a chance to keep a good performing employee at a wage I can afford to pay. The only reason that the employer might try to drum up a bogus reason for termination is to set it up that the termination was for misconduct or something similar that would get you denied for unemployment benefits. If you get denied unemployment then the firing won’t increase the unemployment tax rate for the employer. It’s not right, but some employers do try to play that game.

About all you can do here is apply for unemployment and go from there. From what you described, there is no wrongful termination lawsuit available here against the employer.