What state or county? Your employer is likely full of it. If they can't pay you they are going to have a difficult time paying their attorney to sue you and if

What state or county? Your employer is likely full of it. If they can't pay you they are going to have a difficult time paying their attorney to sue you and if there is a labor board report them ASAP. If it's me I resign in the morning but others are right that you should get some real legal advice but you say you signed nothing so I'd consider that at will employment myself :)