At will employment isn't a magic trick, and this case demonstratesit clearly. It means employees can be terminated without cause. But if employees are terminated without cause they get to claim unemployment. That's why they manufacturered a reason here - to keep him from being able to claim unemployment.

It also allows them to term employees for illegal reasons. An older employee making more money and approaching pension can't be fired and denied pension for being old. But if they steal a cookie? Absolutely.