Hi,
I have a question. We have an employee who resigned and is currently working out his two week notice. Is that a problem with us letting him go early?
Thanks!

Many places, ( actually everyplace I ever worked except one) always let the person go home the day they gave notice, you will of course have to pay them out for the length of the notice.

So you pay them the two week notice and just don't have them come back

THIS IS EXACTLY why a lot of people don't give notice. Not many people can afford the 2 unpaid weeks if they get fired early for giving notice.

But I believe they can sue if you try not to pay them the 2 weeks, they are giving a fair amount of time for you to find someone new.

It isn't uncommon at all to tell the employee they don't have to work out their notice. It is especially prevalent in the IT industry, where large companies don't want outgoing employees to have an opportunity to slip in a last minute virus or have access to sensitive information. If you choose to let them go early, though, you should pay them for the full two weeks.