In this case, is it ok for me to make my boyfriend choose between me and his job?

My boyfriend, Jonathan, works at a night club in Miami. He has worked there for a few months now. We are in a long distance relationship, have been for almost 5 months now, and I live in Michigan, 1300 miles. The night club eventually began to worry me a little bit, but it wasn't a problem in the beginning of the relationship. I guess my fears popped up when the relationship got more serious.
He is around drugs always, and alcohol obviously. He is not a big drinker though, and doesn't do drugs. I probably shouldn't judge here, I am the drinker/drug user(only occasionally) but I do it alone or with family.. No parties or random guys. But it's still not a great environment for him to be in. The girls that work there are always half naked. A lot of them are really profanity, I can tell from their posts on his facebook. There is one girl that I really despise, she will do really slutty things like push her breasts together at Jonathan to make him blush because they all see him as a "kid". He is the youngest one that works there. When they do this he looks away.. He is a really respectful guy.. This is his first relationship. He hasn't cheated on me and I don't think he would under normal circumstances. He is a big softie.
Well, Friday night(after midnight) was his 21st birthday. I asked him not to drink and he said he wouldn't. I woke up at about 3 A.M. and texted him happy birthday.. He was drunk. I was a little worried over this, but I didn't say anything because come on it was his 21st.. Eventually I convinced myself he would never do anything to hurt me. So I asked him.
When he said what he had done, my heart kind of dropped. He had grabbed one of his co workers' asses. Obviously that's not THAT bad. But add 1300 miles to the mix, and him working there, with that same person.. Eh. makes it a little worse. He was honest with me about it, he never lies to me. He apologized. He was crying because he felt so bad.
I honestly don't blame him too much. His co workers convinced him to get drunk. They were also the ones telling him to grab her ass, because he "wouldn't remember it tomorrow". He has today, monday, and tuesday off. I told him that before he goes to work Wednesday, he needs to decide whether he is going to quit his job and stay with me or keep it but not be in a relationship with me.
I feel reallllyyyy bad for making him quit. I almost don't want him to. He makes great money, and he is saving that up to move to Michigan. But at the same time, there is no way I could be in a relationship with him with him working there any more. Do you guys think it is fair to make him choose between me and his job?