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Is spamming the Meta tags harmful (with google)?
Will it get the site banned?
Should I be looking for a new job?
There are words in there that dont even show up on the page or probably on the entire site. They told me that my SEO isnt working properly.
You tell them that their version of SEO hasn't worked since about 1997. :)
Is spamming the Meta tags harmful (with google)?
If you mean the Meta Keywords tag ... not really. Most search engines either ignore it altogether or place such little emphasis on it that it makes no difference one way or another. Many web sites that rank well in search engine don't even use the Keywords tag.
Yahoo looks at the Keywords tag, but they suggest it only be used for things like synonyms and misspellings of words that appear on the site. You may want to read this interview with Jon Glick [e-marketing-news.co.uk], Yahoo's search manager. Lots of great information.
If you're referring to the Meta Description tag, they'd be stupid to use it to describe something that isn't reflected on the site. It's an important tag, but it has to describe the page in question to have any benefit.
Will it get the site banned?
Probably not, because they pay so little attention to it. (Keywords, that is...)
A good place to add misspellings, variations, and quality niche phrases your site covers but does not necessarily contain.
Which is precisely what I said about Yahoo above. But I wouldn't make the jump from that all the way to "importance is on the rise." If you read Jon Glick's comments about how Yahoo considers Meta Keywords, he really downplays its overall importance.