Que significa You're bluffing?

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It's kind of a combination of mentir/engañar. Me has dicho que vas a hacer algo para influenciarme, pero creo que de verdad no lo vas a hacer. Ejemplos:

Employee: I want a raise.
Boss: No.
Employee: If you don't I am going to quit and find a new job.
Boss: You're bluffing. I'm not going to give you a raise.

Then two things might happen:
#1: Employee: You're right. I was bluffing. I guess I am stuck with this shitty salary.
#2: Employee: Fuck you. I quit. I was NOT bluffing.