Can I fire an employee because she dated her boss, or will it be considered retaliation?

Ann Kiernan and Rita Risser reply:

Whoa! If there's a clearly written company policy forbidding dating between employees, both of them should be disciplined. If you do discipline, the boss should receive the more severe discipline as he is the management person responsible for policy compliance.

If there is no policy, it may be appropriate under your harassment policy to counsel or discipline the boss. Termination of the subordinate in any event seems completely inappropriate.