WOW, that's harsh. It does sound to me that there is going to be a problem at the workplace. No matter how your FIL feels about you, you do have to remember that blood is thicker than water. FIL will ALWAYS take his D's side over your, no matter how fond he was/is of you. I would look for an alternative workplace. I just cannot see this working out well for you. I mean in a normal situation you would probably politely say to your FIL to mind his own business, but you can not tell your boss the same.