SDCL § 60-4-10: Discharge of employee--Concealment of misconduct.

An employer may discharge any employee, whether engaged for a fixed term or not, if, being employed about the person of the employer or in a confidential position, the employer discovers that the employee has been guilty of misconduct before or after the commencement of service of such a nature that, if the employer had known or contemplated it, the employer would not have employed the employee.