Many employers are ignorant of the law, that's why they have attorneys. If an employer "offers" to let one go, since they will not remove a SSN from records - do not say "yes and quit". Keep the position.
The easiest route is to redeem in lawful money and file a lawful money tax return each year to be compensated for income taxes withheld throughout the year.
The confrontational path is to hire an attorney and enter a lawsuit against the employer. This will of course result in negative feelings towards the employee filing suit, but will likely end in a decent settlement payout if the company is large enough to sustain the penalty and continue operating.