Returning to work from WC Disability, was told my position was filled.

I was injured at work after a hard fall in 2010. I have been off work since then and have exhausted all WC benefits (AME doctor said I was PS 10%, even though my treating doctor still recommends I be off work) and state disability only lasted 52 weeks. I needed funds so had my doctor issue a release with restrictions, nothing too extreme for my position (I work in Accounting). When I first tried to return to work I was told I had to be 100% released before I could go back. I was not laid off but was not able to go back to work. I tried taking out a 401k loan but was told I couldn't unless I was working. I asked to completely withdraw my 401k and was told I could not do that either unless I resigned. Two weeks later I relunctantly resigned explaining that I felt forced into resigning. I was then told all the communications I had had in the past 3 weeks were incorrect and that I COULD go back to work, that a Interactive Process Meeting was scheduled to go over what I was able to do and how they could accommodate my restrictions. When I went into the meeting, I was told my position was filled and that the ONLY position available in the company was an entry level order entry position in the Purchasing Department... where the supervisor is the ONLY person in the entire company that I (and several other employees) have had issues with in the past. Several issues! I feel like they're offering me something that they know I will reject so they can say they tried, but I thought I was supposed to go back to my own position. Going from my Accounting position to a far lower level position does not seem right. Is this legal for them to do and are they in violation of FEHA or any other CA laws regarding WC disabled workers?