The problem here is lack of evidence and availability bias makes the decision process look terrible, without giving us enough evidence to be confident about that conclusion.

If a decision is appealed and reversed, would we hear about it? If the employee did a proper review and concluded that, yeah, it's legit, for reasons we would agree with, how would we know from only hearing the other side of the story?

This is why actual judicial systems are more transparent. Cases are tried mostly in public. Judges write justifications for their decisions. This allows us on the outside to review what they're doing and understand how it works.

But, the downside is that it's slow, expensive, and there is rarely any privacy.