Can my employer change my employee level/status? I was a level 1 w/ benefits now I am a level 0 w/ no benefits w/ no prior notic

Very legal. If you don't have an employment contract or a union membership, you're an "at will" employee and have virtually no rights. You can be fired without notice at any time for any reason or no reason at all, and it's supposed to be consolation that you're able to quit without notice and for any reason or no reason. Likewise, your employer can do less than fire you, like demote you or reduce your hours and/or salary and/or benefits, like yours just did.

In France, the workers have real job protection, but not in the good ol' USA, where our version of capitalism means that corporations have legal personhood and are free to send jobs offshore and avoid paying taxes here and have free speech rights to give as much money as they want to politicians who then make laws that favor their corporate constituents.
Always vote for the most progressive, liberal candidate you can, if you ever want any of this to change.

Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship.