1) she not certified to practice law in Indiana, but does practice employment law.
2) These are the obvious questions any lawyer would tell you to ask yourself:
Do you have a written employment agreement? Read it now.
Are you an "at will employee" (terminable at any time for any reason) or employee terminable only for "good cause" or on some kind of fixed term contract or what?
3) This is not really a "legal" matter, this is really a "does your employer want to keep" you matter. Unless you work for government or have some other intricately regulatior bound process, in that case call your union represntative and your lawyer right now ($$$$).
4) It all depends on whether your employer likes you. If you can only be terminated for good caues and your employer likes you, throwing significant resources at this including hiring an atterney to subeana everything from the domain name register is reasonable. On the other extreme if your employer doesn't like you and you are and "at will employee" then, well, they reasonable suspect you of a faud and do you really think you can put anything togeather that will get rid of that reasonable suspicion? Only you know your financial resources and how much your employer likes you and what the terms of you contract are.
1) Tell the employer you don't own the domain.
2) Tell the employer that ICANN thinks you own the domain, and you are willing to empower your employer to take down the domain.
3) If you and/or employer can't convince ICANN you own the domain, then you have evidence to your employer that you don't own the domain.!