If this is true then I am absolutely disgusted that a so called modern country can legally treat people this way! Pathetic and disgraceful behaviour.
The US doesn't really have any laws against privately-held businesses hiring and firing whoever they please. There are exceptions in some states for unions, and exceptions almost everywhere for contracts and protected classes, but that's about it.
But, again, what would you do differently? Except in the cases listed above, employment is not the business of the government, and it's not something the courts should meddle in. Nobody is constitutionally entitled to the job they hold.
Title VII and the Iowa Civil Rights Act are not general fairness laws, and an employer does not violate them by treating an employee unfairly so long as the employer does not engage in discrimination based upon the employee’s protected status.
It's not fair, but it's legal, and the court said as much.