@Willow86,
Find another job.
Seriously. This situation is lousy and it's not likely to improve. Get out now and salvage your work reputation. And make sure, even if he cannot give you a recommendation, that at least he can confirm you worked there for however long you did.
And this is Reason #438 why you don't date where you work.
You can fix this by leaving. It is highly unlikely to be fixable any other way.