I think its state by state, but even where it is, companies get a pretty bad rep for actually using it regularly on software engineers. In the current political climate it if the company involved isn't one where the koolaid is being drank by the gallon but big enough that it has a reputation, it would quickly end up on Glassdoor and social medias as a big deal.

"Wrongful termination" lawsuits are still a thing. If you fire someone, they can file a lawsuit that is written to make it look like they have a case. You can fight it, you can win, but it still costs you lawyer time, which means it costs you money.