All you need to do is document the tardiness and leaving work, document the falsification of time records..... document, document, document.....

you need to let this person know their performance is unacceptable (if you have not already), give them a set amount of time to improve and if they don't terminate them.....

use "progressive discipline" (warnings, write up, then termination)

not because you have to but because it is the right thing to do,

and at the same time it gives you proof of misconduct which means NO unemployment charged to your account.......

Texas recognizes the "at-will' employment doctrine, so legally you do NOT need to use progressive discipline BUT....

if you want to fire people and NOT pay unemployment you MUST have proof of cause and the very BEST way to provide that proof is to have used progressive discipline.......

this has the added benefit of improving employee performance which is what you actually want to achieve........

If he worked somewhere else for most of the 9 months or so before you hired him, he'd likely be eligible, otherwise not.

Paying increased unemployment even if you do wouldn't be as expensive as having him stand around.

DOCUMENT!!!!! And insist that he clock in and clock out accurately. Warn him in writing that this is required, then monitor and document what he really does. Falsifying time records would make him ineligible for unemployment if you fire him.

He has told you that his wife has sued about every job she worked for and this is his way of intimidating you. Anyone can sue, but the question is, can they win?

Like the other posters stated, you need to document everything from this point on. I suggest that you get yourself and others involved to validate. Give him 30 days and tell him you will not pay him for undocumented time not worked and failing to do his job.

Then when you terminate this lazy guy and he files for UI benefits, you will need to appeal this with all the proof you have so he will be at home doing nothing and not getting UI benefits. Where did you find this guy? Why not call his former employers and see what they say about him.

good luck