They list them as ineligible to be rehired whether it is warranted or not usually based on an unwritten internal rule to get even with employees.
It makes your next employer think you did something bad or wrong even in an employment at will state.
If you push the matter with them they might say they made a mistake or give some type of run around.
The Labor Law does not seem to address or regulate this action.
The Labor law needs to be changed!!!!!