I would meet with the parents and show them the data from Larry's assessments. I would explain to them that he has struggled all semester with the rigor of the honors class. I would tell them about the expectations for the next honors class. Tell them that you want what is best for Larry and from his work in your class, you think it would be best for him to take a regular class next year. If they still insist on him taking honors, talk to them about tutoring or any other resources that might be helpful to their son's success.

We have had this happen not only with Honors classes but also with Advanced Placement classes. We have had to tell parents that students are not ready for the work and they are doing more harm to their child's GPA which leads to scholarship opportunities and college enrollment chances as well as causing possible academic burn out at an earlier level. We always suggest showing parents and students real data and tests to make them know what is required throughout the year. I would recommend the student be put in a regular class and aim to do well in it and if successful this year then shoot for Honors the following year if they want to do that. That way you are not eliminating their opportunity of Honors all together just postponing it until the student can show academic success.

You could give Larry assessments, performance task, and other activities that are on-level, then have a parent teacher conference to show Larry's parents the difference in the quality of his performance with assessments and task that are on-level, compared to those that are honors level assessments and tasks.