I live in Maryland and I have been with my company for 7 years come September 2010. My employer is reorganizing and I am being told I will be laid off. My current position is not being eliminated and I have done nothing wrong. All of my reviews have been very good, I have received raises and bonuses every year. My current boss is being moved into a new position and another man is taking over that position. The company has not moved another secretary into my position before in the last 3 reorgs they have done. The person they are putting into my job, has had her job eliminated. Is it legal for them to move her into my position, therefore making me unemployed when technically my job has NOT been eliminated, but her has?

Yes unless you have a contact or are part of a union and have more seniority than her. Most jobs are at will and they can layoff and put others in your job merely because they like them better if they wish.