I'm pretty familiar with the labor laws here as I have another business that employs a fairly significant number of people and had a labor lawyer review the state laws prior to moving here. SD is also an "at will state" which means you can terminate for just about any reason except some type of discrimination. The issue is that as an employer, you pay unemployment tax based on an experience rating. The more employees you let go (for whatever reason), the higher your tax. There is also a 90 day "no fault" option if it was discussed at the hiring point (it was) so we have 90 days to make a decision but we are not going to let it go that long. My biggest concern is not labor laws as they apply to him but as they apply to some of the other staff. I have now had kitchen staff describe the kitchen environment as "hostile" and "angry" and believe me, I don't want to get into a situation of having to explain and defend THAT to a judge or jury.
I appreciate everyones help. We have two other options which we are pursuing at this point and I believe we will be in a better place in a couple of weeks.
Julie