No I don't know where you worked but I have never seen a company do that unless you keep getting wrote up for the same thing. I guess it depends on what the screw ups are I could see it your way about showing up late and doing stupid stuff etc.
Your best post yet. At a micro management side you might be correct. But when it comes to a law suit, all bets are off. They play to win in these type of cases because it sets precedence.