Then he would hire somebody like me to sue you, because it is unlaful to fire a person for obeying the law. And almost every state has a statute which requires notification to law enforcement of an illegal act.

Presuming that you had not previously informed the employee it was OK to tkae two hot dogs, and pay for one (I presume you tell him to report retail thefts to the police, because if you don't you will be out of business soon, and uninsured sooner), then he is obligated to report the attempted theft.

Maybe I should have a talk with you employees.