I find it fasinating the many points of view shared in this thread, my gut reaction is butt out boss but some interesting points were made about the power of a leader in business in a small community.
My non secular reation is butt out Boss what right have you got to interfere in my personal life?!?! Quit the job and while generally I find the American culture of legal action offensive this is one of those times where enough is enough and people like this Boss often understand only one thing (as much as they claim to be enlightened...)
The christian side of me says is isn't God the only one who can judge of our existance? If you are a good partner and a good father (uncle) to the children who are we to judge your relationship?