First of all, to the OP, I would like to say that you have my sympathies. I hope you find another job very soon, and hopefully with another employer who treats you well. My only advice to you would be to contact a lawyer, which has already been suggested.
My main reason for posting is that I take issue with this suggestion:
His boss was _crying_ at the meeting where he told everyone they were fired. The OP said that his boss treated him well. You suggest to do this?

What kind of a person are you? Are you that callous? Is this how _you_ would treat an employer who treated you well?
Rest assured, the boss will be suffering. I know people who have had to go out of business, and it is not pretty, whether you go into bankruptcy or not. It is probably more than someone like yourself can handle. As a matter of fact, I don't think you realize how difficult running a business can be. It is an endless job, you don't really get a weekend "off", never mind a real vacation, because even if you do manage to get away you always have to be in close contact with your business.
Oh, and many of the small and medium sized business owners I know care a _lot_ about their employees (The boss in question sounds like he is one of these). They know how much their employees are depending on them, and how much their employees families are depending on them. How would you feel if you had that much responsibility on your shoulders? Think about it for a bit.
Too many adults act like spoiled children when it comes to a good job. They don't appreciate it, they expect it. Well, many good jobs are draining away, so appreciate it if you have one, and be sure to prepare for the possibility of being unemployed. If you are like most people, there are no lifetime guarantees of a good job.